Avoiding the insurance scam, Part II

Insurance scams can be big business. High premiums and unemployment leave many considering their current policies. This is where phony providers—with their health discount and limited benefits plans—step in. Promises of low premiums for optimum coverage take advantage of many but go unfulfilled when needed. For consumers, needless to say, this is a problem. But if the consumer is informed, these scams reap less. The Coalition Against Insurance Fraud’s website,


www.insurancefraud.org


, has a wealth of information on scams great and small.

 

As promised, here are more tips to help wage the fight against fake insurance:

 

  • Universal acceptance. Phony providers will admit everyone into their life and health insurance plans, no questions asked, even those with pre-existing conditions. They don’t intend to honor any potential claims; so long as the premium is paid, they’re happy.

 

  • Ridiculously low premiums compared to competitors. It may be wonderful to reduce your premium, but you’d sacrifice coverage despite what they tell you. Legitimate insurance companies cannot afford to stay in business with almost non-existent premiums. When the premium isn’t proportionate to the benefits and coverage given, a scam isn’t far away.

 

  • Research insurance providers. Ask for references from current clients. Any avoidance on this front will be a major clue. If they are unwilling to provide references, they have skeletons they would prefer to keep in the closet. Don’t add yours to the collection.

 

  • Asking for personal information. Any company that presses for your bank account number, credit card information, or even Social Security number could be trouble. If you have any nagging doubts, get advice from a reputable insurance agent—like those at Homer Smith—who can help you make an informed decision.

 

At Homer Smith Insurance, we can help you get the insurance coverage you need. Serving the insurance needs of Washington since 1950, we are also licensed in Oregon, California, Nevada, and Arizona.

 

Erin Stork, Homer Smith Insurance

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