Steps
- Recognize the name of the company. Always read their pamphlets and research their web site in entirety to check for anything strange.
- Check to see if the company has detailed explanations on their insurance claims forms. Never sign blank insurance claims forms.
- Find out if the company is licensed. If it does not say anywhere on their documents if they are, then call the Insurance Commissioner's toll-free Consumer Hot line at 1(800) 562-6900 to find out.
- Meet the salespeople in person and know that they are for real. Never do business with telephone salespeople.
- Keep your personal information confidential. This mainly concerns your social security number. Give it out only when you are ready to make a purchase.
- Be alert for bogus plans. This refers to information posted on fliers and ads you may receive in your email account.
- Be suspicious if the insurance is too cheap. This could be a way to get you to enroll, and then they might charge you expensive fees later.
- Find out what the company will charge you up front and how much you will have to pay out-of-pocket. You should never be charged unless you change your plan. Contact them directly if it is inconsistent.
- Wait for the company to send you appropriate paperwork in the mail. Never give your credit card number to a representative over the phone.
- Read everything. Never sign anything with unreadable or too small print. If you can?t read it, don?t sign it.
- Review carefully their explanation of benefits statement. If it does not provide you with enough information, contact them.
- Sign up for a plan that you'll actually use. Don?t sign up for ?extras? to your insurance policy that you know you?ll never use. It could be the difference between a high and low cost.
Video
Article provided by wikiHow, a wiki how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Avoid Insurance Scams. All content on wikiHow can be shared under a Creative Commons license.