How to Protect Yourself from Car Insurance Scams

It is bad enough to be faced with an expensive auto loan without having to worry about an even more expensive car insurance. But what is more worrisome today is the growing number of auto insurance scams that you might encounter and fail to avoid. But what can you do so as not to fall victim to these scams?

Don’t be fooled by sweet-talking agents

Admittedly, it is hard to say no to offers of inexpensive car insurance policies. Unfortunately, if the deal sounds too good to be true it probably is. The best way to protect yourself is to verify the company that the agent works for. Ask for a license number and the company name. You should also compare the policies on offer with that of other reputable insurance companies.


What if they tell you the offer will only last for the next 30 minutes? End the call. Walk away. Don’t risk it.

Protect yourself from staged accident

Driving defensively is the first and most effective way not to fall victim to staged accidents. But if you do get into a road accident, take pictures of all the people and vehicles involved. If someone approaches you saying they know a doctor, lawyer or mechanic who can help, ignore the offer and you are likely to be charged higher than usual.


Work only with a trusted mechanic

Many have been victimized by auto repair scams when they receive the Letter of Authority (LOA) to repair, because they accept the first great-sounding auto repair deal that they receive. But if you don’t want your car to have counterfeit products installed, work only with the mechanic you can trust, or with repair shops connected with insurance companies.


It is sad that something that is supposed to protect you can be a source of problems, but you can avoid car insurance scams using the tips listed above.

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