Important Tips on Knowing Automotive Insurance Company Scams

4 Tips for Knowing Auto Insurance Company Scams

discussion over carWhen shopping for insurance it’s difficult to know sometimes if you are being scammed. That’s why at Honest Car Dealer, we want to provide you with the know-how to avoid scenarios where you leave with your wallet emptier than it should be.

Auto insurance companies are always looking for a way to get more money. They do this by increasing rates and dropping claim payouts. However, your experience buying insurance should be a haggle-free claim process and the fair service you deserve. Below are four tips to help you accomplish this, and to know when an insurance company is, well, not being completely honest.

1.   Know What Your Options Are

Insurance companies may offer specific coverage that you don’t really need in certain states. It’s actually optional. However, the only way to reject the optional coverage once the policy has been issued is to write to the company and tell them you wish to remove that particular coverage.

2.   Watch Out for Accident “Forgiveness”

I’m sure you have heard about Allstate’s commercials in accident forgiveness. Most of the time, after one accident your insurance will not raise your rates. Companies like Allstate will provide you with the option of a “Protection” package in which you can be “forgiven” for an accident; when even if you don’t buy the package, you still are protected. These packages may offer some other benefits, but research thoroughly first.

3.   Review your Policy Renewal Every Time

Auto insurance companies may try to add new terms or changes in your renewal that may seem slight so you won’t even notice. However, read thoroughly and make sure everything looks like it did before. Take into account state laws that have changed, which may be why the rate went up. Talk to your company about new discounts. Also, find other company options by getting quotes.

4.   Low Deductibles are Usually Not a Good Sign

If the insurance policy is automatically at a low amount for the deductible, they might be scamming you into paying higher rates for that low cost. For example, $250 is a really low number. If you can, we recommend paying more for your deductible that will result in getting more money from reduced premiums.

Remember Honest Car Dealer for All Auto Know-How

For more auto tips and needs, continue to check back with Honest Car Dealer. We provide reliable information to all car buyers!

October 9, 2012 by Jamie Rettig