Occasionally, insurance companies offer great discounts and low protection premiums on their products and services. With a wide variety of companies to choose from, how can one determine which agencies are legit and which ones are a scam? Below, you will find five concrete signs that indicate a high possibility that you are being swindled to a car insurance rip-off.
1) Über low insurance fees
We hate astronomical prices, but the exact opposite is just as scary. When you find yourself asking the question “Why is it priced so low?” conduct a background check on the company offering the low premium. Do your research. Are they still doing well? Do they do this often? Is this a new company trying to attract clients? Base your decisions from the answers you acquire.
2) Taking advantage of their clients
Do they abandon you in times when you most need them? Comprehensive car insurance involves the security of your vehicle from harm and peril coupled with the assurance that the proper course of action will be taken should something damaging happens to your car. Holding on to the essence of proper insurance, it is truly heartbreaking and traumatic to experience being robbed by people who promised to take care of your cash and property.
3) Automatically screens a client liar.
One instance that could result in the kind of heartbreak mentioned above is when your insurance company screens you as a liar. Although it has been said that this is a common practice in the industry, it is worth knowing that many good and reputable companies have their own way of detecting whether a report or claim is true or falsified. So be honest from the start. If they screen you out and you know by heart that what you are reporting is true, then it’s time to shop for other companies.
4) Repairs your car as cheaply as possible
Read the fine print. Take note on crucial terms and ask your agent to translate it to layman. Most reputable companies will offer repairs – and by “repair”, they mean quality-assured services and superior car parts, and not “cheap repairs just for the sake of saying that your car has been restored”. Before allowing anyone to touch your vehicle, check the replacement parts that they are to put in your car.
5) “Agreed upon value”
More often than not, contracts have a catch, so as mentioned in the previous point, it is best to read the fine print, ask a legal consultant, and request for a layman’s translation of those terms you don’t understand. One common loophole is the “agreed upon value” that’s sometimes interchanged with “current market value”. We know that cars depreciate and that they depreciate fast! Regular cars have a depreciation value of almost 75% 24 hours after your purchase! So be clear on the value as to which the car will be evaluated at in case of an accident.