AUTO INSURANCE ARTICLE
How to Detect Sports Car Insurance Fraud
By: cradel_book
Driving a sports car is just a dream for lesser mortals. And you are being the source of envy of men and women alike as you carry that piece of a magnificent driving machine on the road. Ah, your flaming sports car! Not only is it more expensive than regular vehicles, they generally carry heftier insurance premiums. And we are sure you want the best insurance for this sports car of yours. But beware; many auto insurance companies might be vying for your attention to get their offers. Some of them do business in good faith, but as in any transaction, some might be out there as well to peddle some scam. So read on, and know how you can detect and avoid sports car insurance fraud.
Typically, sports cars are not covered by your regular auto insurance companies. They are covered, in most cases, by high-risk insurance companies, who are also in the business of covering airplanes and yachts.
But there were some cases of scams involving the offer of “cheap” sports car insurance to unsuspecting consumers. These offers may appear to be genuine, but if you look further, they are nothing less than high-stake scams, intended to lure people into paying for auto insurance coverage that is either invalid or nonexistent.
What is the most common auto insurance fraud?
The most common scam is an offer of cheap sports car insurance via online or community paper advertisements. Often, the advertisement content is similar to offers made by known auto insurance companies or agents. Often, the claim of these advertisements is that they can provide you a cheaper auto insurance rate than what you currently have, or lower even than the lowest quote that you can get in the market. Most of these advertisements leave the name of the insurance company, sales agent, or broker unmentioned. But in cases where they give you a name, it is most likely ripped off from a legitimate company, or it is a non-existent entity.
How does this scam go? The company or its supposed agent proceeds to get information from you about your driving history. With the information you have provided, this agent will then try to contact a licensed insurance company for an auto insurance quote. The scam starts when this agent pretends to be you. You will then be asked by this agent to pay him a broker’s fee. Legitimate brokers do not charge fees from you but gets her pay from the insurance company.
Also, since the information provided to the auto insurance company was false, the auto insurance coverage will not be honored and will be rendered invalid.
Another modus operandi to watch out is this. You get hold of an agent in the advertised company, who by then provides you with a quote. When the quote satisfies you, you are then requested to send your payment through a money wiring service. Others may even opt to meet you in person for your cash payment. Like the previous case, you have been scammed. There was no auto insurance coverage, and the person just got your cash.
Don’t let yourself fall into these scams. Protect your car and protect your sanity. We hope this article will make you detect scams from the legal but cheap offers.