Red Flags to Look Out For When Getting an Insurance Policy


Nothing in this world is certain. At one point, we are fine, enjoying the things we have, and basically enjoying life has to give to us. The next thing you know, you encounter accidents or acquire a disease that would change your life forever. In the worst cases, it can be the abrupt end of your life.

This is what insurance websites and companies often tell us — to be prepared for unforeseen circumstances. In other words, getting insurance can help us be prepared for the unpredictable future. However, it is also important to be wary of choosing a reliable insurance company and of avoiding getting scammed of your hard-earned money.

The truth about insurance scams

Over the years, healthcare frauds and scams have become more common. More and more people get attracted to getting an insurance policy, religiously paying monthly premiums, and then end up not getting paid by these scammers in times when they need them the most.

Unfortunately, it is said that more and more insurance scams may further increase for the next years. These so-called companies may even call themselves as providers of health and medical care providers, auto insurance agencies, and more. That is why you should be careful in choosing an insurance company that is trustworthy and reliable.

How to avoid insurance scams

Unfortunately, there are a lot of so-called insurance agencies that aim to fraud unsuspecting clients. Here are some tips to avoid insurance scams and how to find a reliable insurance company that will ensure and secure your future.

1. Do your own research.
They may be popular and have been hearing about this company for a long time. But the question is whether they are popular for a good or bad reason. You can check out online reviews, or get to know more about them through their website/social media pages/pamphlets.

insurance scams

2. Know the signs of insurance scammers.
There are some major signs that can help you determine which ones are legit and ones that are scammers. Among these signs may be the following:

  • “Aggressive” insurance sales agents who would contact you through phone, emails, or even in person
  • Agents who pressure you to sign up for a policy. Getting an insurance policy is a major decision in life that you should carefully think about and not on a whim.
  • If the insurance agency offers way lesser costs than others or if it sounds too good to be true, then you may want to consider your options.

3. Make sure to check if they are a licensed insurance company.
To validate, you can call the Insurance Commissioner’s hotline. They should also be able to state in their documents that they are indeed licensed.

4. Meet insurance agents in person.
Never deal with agents through phone or email. Better yet, talk to one in person and ask all the things you need to know before you get insurance. If you know someone personally who is an agent, you can go directly to him or her for your insurance concerns.

Getting insurance can be a major decision in your life. That is why you should consider your options carefully. You should also only deal with trustworthy insurance companies and agents and make sure to understand what kind of insurance benefits you are supposed to get.

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