Insurance is big business. It’s also an attractive opportunity for people who are good at deception and defrauding unsuspecting clients. With trillions of dollars being spent every year on premiums, it’s easy for dishonest agents to find the victims who are looking for the best insurance deals possible. People who are trying to save money may fall prey to deceptive insurance practices if they fail to pay attention to the warning signs.
6 Common Insurance Scams
- Fake Insurance
Fake or bogus insurance policies do exist and they can cost you a lot more than money. A person can claim to be an agent with almost any insurance agency and actually produce authentic-looking certificates documents using editing software on their computer. A good rule of thumb is to research an agent and their company if you have any doubts at all about their authenticity. Talk to the insurance agency to determine if the person claiming to be an agent really works there and that the policy they are offering really does exist.
- Embezzlement or Premium Theft
Embezzlement, sometimes referred to as premium theft often occurs without the customer’s knowledge. If you pay a certain amount each month in premiums and start to notice a discrepancy in the amount your insurance company says you paid, your agent may be pocketing the money. While this is fairly uncommon, it is still a possibility, especially when a person has multiple policies with one carrier or agent.
- Policy Swapping
Insurance agents make their living from the commissions they get from selling policies. If you have had the same policy for a while, odds are it isn’t making your agent a lot of money. While it’s good to review your policy every year or two, it doesn’t mean you have to switch to a more expensive policy just because your agent tries to pressure you into it. If your old policy still works, keep it and avoid switching to a more expensive policy you don’t need.
- Hidden Charges
This is where reading the fine print before you sign on the dotted line really pays off. An agent may convince you that the policy you are getting is affordable, but in reality, it may have hidden fees that will cost you much more than you were quoted. Make sure that you read through the entire policy before you sign your name to it.
- False or Misleading Advertising
Many insurance policies have disadvantages that an agent will gloss over so they can make it look more appealing. They may even avoid discussing them outright and lie about them to make it seem like you are getting a better deal than you are. They may lie about hidden fees or the fact that your premiums will increase over time.
- False Investments
Insurance policies sometimes contain investment opportunities. Insurance itself is an investment in your financial future. A deceptive insurance agent may try to convince you to invest in a specific type of policy that will provide financial rewards in the future. They will sometimes offer certificates or promissory notes to substantiate their claims of a profitable return on your investment. If you have doubts, talk to a different agent and get a second opinion.
Save Yourself from Insurance Scams with McCarty Insurance
If you’re worried about getting scammed when it comes to insurance, you need to work with an agency you can trust. Contact the agents at McCarty Insurance today and schedule a consultation. With our many years of experience, we can review your current policies and give you an honest evaluation.