Car insurance fraud is common in the country. The facts reveal astonishing details. According to a reliable source,” 95% of individuals know little or nothing about car insurance-related issues.” If you become the victim of this, you may lose money and, of course, time.
Getting a claim is the least expected in such cases. So, what you can do? You can remain vigilant about unrealistic offers if you are seeking car insurance. You may consider one if you want to buy a new car on finance. In that case, it is mandatory to buy an insurance cover.
Thus, whatever your initiatives are related to the vehicle, knowing and being aware of a few things may help suspect the fraud and take wise action against it. The blog lists the best techniques to spot car insurance fraud. It may help new car buyers or those who want to protect the car costs damage or save on one.
What is a car insurance fraud?
Car insurance fraud encompasses a range of wrong or illegal practices involving intentionally deceiving customers. It may also mean misinterpreting the situation to save money on the claim made by the customer. Most falsely operating companies rule out such practices to increase their profit percentage. These don’t work for the customer but are solely driven by the motive of improving the cash reserve.
6 strategies to know the fraudulent moves of a car insurance company
Most falsely operating car insurance firms utilise the same moves just like a legally operating company. For example- they may practice cold calling, emailing, asking out details genuinely, etc. Here, spotting the fake ones becomes difficult. However, you can still track some footprints the companies leave behind as a sign of fraud. Here are some common ones to spot:
1) Check your existing car insurance policy
You generally receive messages and emails stating the need to review your car insurance policy. It is when you are about to complete the insurance tenure. It’s the best time to know your policy inside out. Write out the essential details on a separate paper and keep it safe. Most online car insurance company fraudsters target individuals with existing policies. You may also receive the call if you hold life insurance instead of a car one.
They may encourage you to buy a vehicle policy, revealing too good-to-be-true rates and premiums. Beware-it’s a clear scam. It is because to reduce the premium, they must reduce the overall cost of the insurance. However, illegal companies don’t reveal this benefit to the customer. Instead, check the existing quotes for the low premium if dealing with a car insurance firm. They may ask you to complete the last payment before fetching lower terms.
You may not want to skip the opportunity. However, you cannot pay the dues immediately if you don’t have it. Don’t worry, you may get guaranteed online loans in the country. You may get 100% approval if you can afford the loan payments without affecting the existing budget or payments. It is an online instant cash facility that provides the money within 30 minutes without detailed documentation. Analyse whether savings from dividends, part-time income or other income source may help. It will be easier to bridge the amount then.
2) Check False alarm- “Claim your accidental relief today”
It is another one of the most common vehicle insurance frauds that wrongly operating firms do. The prime motive is to attract customers and get the money. The caller may claim that you are entitled to the car insurance rebate on the accident you had earlier. However, reliable companies also call the customers to inform them about the claim. Thus, spotting could be difficult. You can check the difference by asking the company for your car insurance details.
Generally, fraudsters lack much detail about customers. If you have been in an accident, avoid revealing too much detail about yourself. It is especially true when you expect the caller to be a stranger. Instead, contact your insurance company to verify it. Alternatively, analyse how much you are entitled to and the documents required to claim it legally.
3) Get the “lowest possible price” now
Sometimes, you may find a post or email listing the car insurance rates. However, the ad may seem nice but the rates are too good to be true. Given the inflation and rising prices, You cannot believe such rates may exist. Fraudsters host and regulate these make-believe policies throughout the web and the market.
However, only a few can restrain themselves from falling prey to it. 2019 around 4000 individuals fell prey to such fraudulent activity and lost their money. The product may look like real but it’s not. Consult an expert before taking any such policies online.
4) Not registered with the FCA
Financial Conduct Authority regulates the financial and insurance firms throughout the country. Any FCA-regulated firm follows a particular insurance lending structure. It must not violate or deviate from these standards. Such companies keep the customer’s safety and intent at the centre of the dealing. Hence, you don’t share any fear of fraud with such providers.
You can rest assured of the safety and the reliable claims that you may have for the car damage. You just need to provide some specific details or documents as proof to get that. Moreover, the lawfully operating firms don’t hesitate to answer any of your queries. Instead, provide thorough support that helps ensure a good insurance experience. You can research online for legal car insurance providers and compare quotes. You may get ample in no time.
5) Analyse the car damage signs
Most illegally operating firms damage the car intentionally to convince the customer of the claim. They don’t give you the money but claim it on your behalf. Thus, beware of any signs of damage to your car. Check whether they are new or have been there for a long time:
- Does your vehicle speed up or slow down for no reason?
- Check for the person driving ahead of you. They may be looking for a reason to damage their car and claim the money.
- Check the person driving behind you. Ensure a safe distance from the cars at the back and the front. It will help you avoid unnecessary car damage.
6) Beware of the ghost brokers offering insurance
Ghost brokers sell fake car insurance covers, especially to new drivers aged 17-24. This is because the individuals belonging to the age group are first-time drivers. Thus, they are more susceptible to falling prey to such scams. These fraudsters launch advertisements targeting a specific age group. These policies are cheaper than what you encounter with a reliable provider.
However, these come with a compromise. You can spot them by checking the address they use. Most ghost brokers use other people’s addresses to purchase policies. Check whether they use yours. If yes, you may get in trouble. It may prevent you from qualifying for the credits and insurance in future. Contact the person immediately if you encounter any such activity.
Bottom line
These are some common signs you must look for while seeking a car insurance policy. Check whether the company you deal with operate legally. Do its measures align with the legal operating standards? Check for the actions and intentions of the firms. No regulated company force you to get the claim. However, fraudsters may do so. Thus, beware of the constant calls and the texts you receive to claim the accidental damage. Don’t pay heed to it.
Leave a Reply