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How to Avoid Car Insurance Fraud in California

Just like many situations, there are those in the auto insurance industry who want to take advantage of innocent people. They might be selling car insurance in California or they might be drivers who are looking to scam the system. Regardless of the threat you face, there are a few things you can do to help you avoid attempts at fraud.

When you purchase auto insurance, avoid situations that involve door-to-door sales people or unsolicited telephone calls. You should be actively looking for insurance before you make a decision to buy. If someone reaches out to you and you happen to be considering a new policy, do your research. Investigate the company he or she represents before making any decisions or signing any paperwork. Unsolicited online advertisements can also be a problem, but there are some that are legit. This is why it is so important to familiarize yourself with a company before making a commitment.

You also need to consider the auto insurance price. An extremely low rate might seem like a great bargain, but there is a usually a hidden reason for a surprisingly low rate. In some cases the entire opportunity is a scam and you will pay without receiving a single benefit. Sometimes paying a low price for coverage means there are so many exclusions, the insurance could never do you any good. Ask for very detailed information about the coverage before paying or signing anything.

You can avoid scams involving cheap car insurance in California, by researching any offers you receive. The Better Business Bureau will have information on companies that are in good standing and that have tried to take advantage of customers. You can also check California’s state insurance department for consumer protection information. Consider any red flags when shopping for insurance. For instance, companies that insist you visit a specific auto repair shop for repairs are usually shady.

Avoiding Scams While Driving

In addition to avoiding scams when purchasing cheap auto insurance, in California you will also want to avoid involvement in a scam once you are driving. Trust your instincts on the road and stay away from drivers who are looking for trouble. If a car pulls in front of you and slows down, back away so you do not accidently rear-end them. Be careful of people tailgating you or driving too close to your vehicle. An accident might seem as if it will be someone else’s fault, but you do not want to get caught up in the blame game. It is easier to avoid a problem than to be drawn in by a driver baiting you into an accident.

If you should be involved in an accident, make sure you retrieve all the needed information at the scene. In addition to the driver’s insurance, get contact information for everyone in the vehicle involved. Avoid people who appear at the scene with information about car repairs or lawsuits. Do not sign insurance claim forms until you have your lawyer review them and do not agree to any kind of settlement without first considering all of your options.

Fraud related to insurance is messy, but you can avoid being a victim by thinking ahead and making smart decisions.

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