5 Tips to Avoid Insurance Fraud

Insurance fraud is out on a rampage. That can be partially blamed on the ever-increasing demand for insurance premiums nowadays. But since pointing fingers doesn't really help anybody, what we should focus on is how you can avoid getting caught working with fraudulent insurance providers. Here are five effective tips that will not only help you avoid them, but help you find more security in your insurance policies, as well.

How To Avoid Insurance Fraud

1. Know Your Insurers

A widely known insurance provider is a safe bet if you want to avoid fraud. However, going with the largest and most expensive insurance provider in town isn't the only way to prevent getting ripped off. A simple search on the Internet for customer reviews and company histories should turn up some red flags. Some common indicators of fraudulent insurance providers include lack of company history, failed claims from past customers, absence of security policies and unbelievably low rates on insurance premiums.

2. Meet Your Agent

It is important that you meet with your insurance agent. Actually meeting your agent in person is a great way to get a feel for them and their business. It can also help you determine if they are running a legit business. If for any reason you feel uncomfortable with the business practices of your provider it’s best to choose a different company.

3. Licensed Agents Only

Only work with licensed insurance agents and always check to make sure the insurance company is licensed with your state department of insurance. If an insurance policy is issued by a company that is not licensed, any policies that it hands out are probably not worth the paper they are printed on.

4. Fill Out Your Application Completely

Take time to carefully complete your insurance application. Pay attention to every detail, regardless of how apparently minor. Even one small error may cause big problems later on. Do not sign any blank application forms or blank forms. You also need to be completely honest when you answer any of the questions or provide any information on your insurance application. Never allow an insurance agent to convince you to file false data or submit incorrect information.

5. Where is the Policy?

You must get a copy of any form of insurance policy outlining the coverage and its restrictions within a sensible period following your purchase. If you did not receive a copy of your policy, you should ask your agent about this. If you don’t have a copy of your policy, you might not get the coverage that you have paid for.

By Matt Reynolds - Google+

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