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Avoiding Insurance Scams | Three Quick Tips

With more than 7,000 insurance companies in the U.S., upwards of $1 trillion in premiums are sold each year, leaving plenty of room for fraud.

Scam-free future
If you’ve ever fallen for an insurance scam, don’t let it get you down! It has happened to the best of us. Unfortunately, it will continue to happen. In this vast industry of more than 7,000 insurance companies, upwards of $1 trillion in premiums are sold each year. That leaves plenty of room for fraud. But instead of hiding in shame, you can turn to our Asurea Scam Report to empower yourself against future scams that might be out to swindle you. Avoiding insurance scams starts with small steps.


Here are the top three tips on avoiding insurance scams, according to the FBI and the Federal Trade Commission.


  • Quick Tip # 1: Do your due diligence: You wouldn’t hire a contractor to build a new roof on your house without first checking the roofer’s references. So, why would you buy an insurance policy from an agent you knew nothing about? Before you enter into any contract, make sure to do your research on the company, agent and the type of insurance policy you’re looking to buy. Check with the Better Business Bureau for evidence of corruption or any other red flags against a company or business owner before signing on the dotted line. Otherwise, you could be signing away your financial security.


  • Quick Tip # 2: Receipts = proof: If you’re purchasing an insurance policy from an agent over the phone, online or in person, don’t end that conversation without first getting a receipt. Yes, a receipt documents your transaction. But it could also be used as evidence if you need to take legal action against an unsavory company or agent. As a matter of fact, save any and every document you receive from an insurance company and take notes during important conversations regarding your policy. You might need to use them to recover stolen funds — and get back your peace of mind.


  • Quick Tip # 3: Keep mum: Trying to find an insurance agent you can trust probably feels a lot like trying to find the brightest star in an overcast sky. That doesn’t mean you should trust the first agent you meet. Keep your personal information, such as your insurance identification number, to yourself until you find a company or agent you feel 100% comfortable working with. Once you’ve found that trustworthy person or entity, be ready to open your mouth and ask questions about the policy you’re thinking of buying. In the end, you want to make sure you know what you are paying your money for. That way, you’ll be able to detect a scam as soon as it materializes.


Asurea Simple Solution Tip:
Never buy insurance from unlicensed agents or companies. Have doubts? Contact your state’s insurance office to check if they’re in good standing. This is one key step in avoiding insurance scams. It takes a bit of effort, but it’s worth it!


Complications simplified
To learn more about insurance scams, read our Asurea Scam Report case-study explainer article, “What Is Insurance Fraud?” And contact our Asurea Life Insurance office to learn more about how you can find the right life insurance policies – no scams, no hassles, always simple.