When it comes to getting the best deal for your insurance, you really need to pay attention to the details.
We are seeing this occurring with more frequency year after year. “Cheap health insurance” or “no exam life insurance” scams are common. Buyer Beware! You could end up with a SCAM insurance policy that will not cover you when you need it the most.
How do we know? We encounter the scams too! We approach the scam head on, asking the insurance questions that scams dance around and nail them for what they are, lies. Here is what you need to know:
Common Insurance Scams
Insurance scams can come from an actual insurance agent or a fake agent. These individuals may offer you insurance at extremely low rates or insurance you do not want or need in order to inflate their commissions.
- The Robo-Call Scam
You’re sitting at home when your phone rings. When you answer, it’s a voice asking if you like your insurance policy. Then they start explaining that you can get insurance for a cheaper price. They go over all the “wonderful benefits” and give you a great price, but the price is “only good right now”, so you need to sign up. Oh yea, and they are quick to say that you have _____ amount of time to change your mind and cancel to get a full refund. Now all they need you to do is provide your personal information.We are sure you already know this, but just in case, if someone calls you and wants your personal information, you should always hang up!
- The Fake Agent
You are looking for cheap health insurance or cheap life insurance on the internet, and you come across an agent’s ad for ultra-cheap insurance. You click on the ad, and it takes you to the insurance agent’s website where you blindly apply for the coverage and agree to pay a certain amount each month for that coverage. If the agent is fake, your premiums are going directly into his or her pocket, and you won’t know it’s fake until you call to make a claim. - The Unethical Insurance Agent
Many insurance agents are professional and ethical, but a few insurance agents are not. These agents tell you all the benefits of the insurance policy they want you to buy, but they skip the limitations of the policy. They can be very convincing and pushy. It is important that you insist on having the contract agreement or the summary of benefits document that outlines exactly what is covered emailed or mailed to you to review before signing up. - The Ultra-Cheap Insurance Policy
If a health insurance policy sounds amazingly good, you should be extremely skeptical. If it is a legitimate policy, it may not meet your state’s minimum requirements, which could leave you underinsured and drowning in medical bills.If you come across any of these scenarios, you should immediately screen the calls or block the phone numbers and report them. Reporting the incident flags the number so that they can be investigated, taken out of business and potentially criminally prosecuted.
How To Avoid Insurance Scams
Avoiding insurance scams involves being vigilant and refusing to provide your information to someone who you did not call. You should also only view insurance policies from reputable insurance carriers.
- Never provide information to an unsolicited caller– If a company or person calls you, never provide your personal information, especially if you are not actively shopping for health insurance or life insurance.
- Be wary of clicking on online insurance ads– The advertisement may look legitimate, but you are better off locating the insurance company and agent via an Internet search rather than clicking on the ad.
- Research the agent– Even if the agent does work for the stated insurance company, he or she may not be ethical. Always research the company and the specific agent before purchasing a policy.
- Research the insurance company– If you’ve never heard of the insurance company, it’s best to do your research to find out if they are licensed and legally allowed to operate within your state. You can accomplish this by looking on your state’s insurance department’s website.
- Never agree to purchase super cheap insurance– If the cost of the insurance policy is 90 percent below average, there’s a good chance the policy is either fake or doesn’t cover what you think it covers. Always read the details of the policy.
Getting a New Policy from a Reputable Insurance Company
Rather than going to 15 different insurance websites and filling out quote forms on each site, we recommend using a local insurance agency. When you do business with a local insurance agency you will have the assurance knowing that your insurance needs are handled in a ethical and legal manner.
To compare insurance rates from top companies in your area contact us at (512) 847-3164 or email customerservice@health-quotes.com. Texas Medical Plans has been serving our Texas friends and neighbors for over 35 years.
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