How to Spot a Bad Car Insurance Company

Whilst many of us have heard of individuals committing insurance fraud against a company in order to claim false car accident compensation, there are also a considerable number of rather unscrupulous companies which are likewise less than honest in regards to the services which they provide. So, how do you make certain that you will not become a victim of such schemes? Although drivers lose tens of thousands of pounds across the United Kingdom each year as a result of insurance scams, you do not have to fall into this category. So, let us take a look at some effective ways that you can spot a scam well ahead of time.

Outrageously Low Quotes

If it sounds too good to be true, it generally is. This maxim is absolutely pertinent to the car insurance industry, as fraudulent companies will often try to lure unsuspecting drivers with promises of saving hundreds or even thousands of pounds per year. They may also offer a great deal of "perks" that seem to add even more value to the reduced rates. This is perhaps one of the most frequent hallmarks of a bad insurance company.

Little Contact Information

The best providers will offer a dedicated email, a physical address and even live contact information via their website. Should you have any questions, they will be addressed promptly and with clarity. Those that are less honest will often divulge little contact details or provide a number that simply does not work. Once again, this is a definite "red flag" and the company should be avoided.

Consistently Negative or No Reviews

A great way to determine the validity of a car insurer is to read what others may be saying. Thankfully, the Internet provides numerous third-party review sites that cater to just this need. Remember that car insurance companies are naturally preoccupied with their next sale; what they claim may not always be completely true. It should be apparent that companies with consistently bad reviews should be avoided and the same can be said in regards to a provider that has no reviews whatsoever. As they say, the proof is very much in the pudding.

Unsolicited Contact

A recent investigative report from the BBC News has found that a growing number of university students are being contacted by companies without any prior warning. They are thereafter offered policies at drastically reduced rates that seem "too good to be true"(1). In fact, the end result can be students paying cash out-of-pocket for a policy that simply does not exist. These "ghost brokers" have already stolen countless thousands of pounds from unsuspecting drivers and any unsolicited contact should always be taken with a grain of salt. In fact, it is best to avoid such companies altogether.

Digging Deeper

One of the problems that we have seen is the fact that it is easier than ever before for a company to obtain the personal details of a driver and offer him or her a seemingly fantastical driving package. This can either be through an email or (recently) by cold-calling practices. They may even know the personal details of a driver to make the call sound more legitimate. As these tactics become more evolved, so must you remember all of the aforementioned details to not become yet another victim.

The most important thing to appreciate is that normally, a bad insurance company will display more than one telltale sign that it should be avoided. By remembering the symptoms of these bogus enterprises, you can rest assured in knowing that you will not likely be "taken for a ride".


Copyright Maureen Davey 2014 All Rights Reserved