How to Avoid Insurance Scams
Recognize the name of the company., Check to see if the company has detailed explanations on their insurance claims forms., Find out if the company is licensed., Meet the salespeople in person and know that they are for real., Keep your personal...
Step-by-Step Guide
-
Step 1: Recognize the name of the company.
Always read their pamphlets and research their web site in entirety to check for anything strange. -
Step 2: Check to see if the company has detailed explanations on their insurance claims forms.
Never sign blank insurance claims forms. , If it does not say anywhere on their documents if they are, then call the Insurance Commissioner's toll-free Consumer Hot line at 1(800) 562-6900 to find out. , Never do business with telephone salespeople. , This mainly concerns your social security number.
Give it out only when you are ready to make a purchase. , This refers to information posted on fliers and ads you may receive in your email account. , This could be a way to get you to enroll, and then they might charge you expensive fees later. , You should never be charged unless you change your plan.
Contact them directly if it is inconsistent. , Never give your credit card number to a representative over the phone. , Never sign anything with unreadable or too small print.
If you can’t read it, don’t sign it. , If it does not provide you with enough information, contact them. , Don’t sign up for ‘extras’ to your insurance policy that you know you’ll never use.
It could be the difference between a high and low cost. -
Step 3: Find out if the company is licensed.
-
Step 4: Meet the salespeople in person and know that they are for real.
-
Step 5: Keep your personal information confidential.
-
Step 6: Be alert for bogus plans.
-
Step 7: Be suspicious if the insurance is too cheap.
-
Step 8: Find out what the company will charge you up front and how much you will have to pay out-of-pocket.
-
Step 9: Wait for the company to send you appropriate paperwork in the mail.
-
Step 10: Read everything.
-
Step 11: Review carefully their explanation of benefits statement.
-
Step 12: Sign up for a plan that you'll actually use.
Detailed Guide
Always read their pamphlets and research their web site in entirety to check for anything strange.
Never sign blank insurance claims forms. , If it does not say anywhere on their documents if they are, then call the Insurance Commissioner's toll-free Consumer Hot line at 1(800) 562-6900 to find out. , Never do business with telephone salespeople. , This mainly concerns your social security number.
Give it out only when you are ready to make a purchase. , This refers to information posted on fliers and ads you may receive in your email account. , This could be a way to get you to enroll, and then they might charge you expensive fees later. , You should never be charged unless you change your plan.
Contact them directly if it is inconsistent. , Never give your credit card number to a representative over the phone. , Never sign anything with unreadable or too small print.
If you can’t read it, don’t sign it. , If it does not provide you with enough information, contact them. , Don’t sign up for ‘extras’ to your insurance policy that you know you’ll never use.
It could be the difference between a high and low cost.
About the Author
Arthur Harris
Arthur Harris has dedicated 10 years to mastering lifestyle and practical guides. As a content creator, Arthur focuses on providing actionable tips and step-by-step guides.
Rate This Guide
How helpful was this guide? Click to rate: