How Can I Avoid Insurance Fraud?

Did you know insurance companies can commit fraud? Most people don’t think of insurance companies or insurance agents engaging in fraudulent behavior. Unfortunately, because you may assume that insurance companies are trustworthy, you may purchase a policy without fully doing your due diligence. This can lead to substantial financial loss. 

Insurance companies and agents often make it hard to know the truth about the policies they are selling. In some cases, they will engage in intentional acts of deception with the goal of separating you from your hard-earned money.  While it can be difficult to avoid getting caught up in this type of scam, there are some steps that you can take to try to avoid becoming the victim of insurance fraud when you are shopping for life insurance or other types of insurance policies.

If you do find yourself a victim of insurance fraud, don’t give up hope on recovering the money that you lost. Evans Law Firm is a trusted, skilled firm that has extensive experience fighting insurance companies on behalf of policyholders in California. We have provided representation in class actions against insurers and agents, and have represented individual policyholders and insurance buyers who fell victim to fraud. For policyholders who are seniors additional protections from abuse apply and additional damages, and awards of attorneys’ fees, may be available.

We will aggressively advocate on your behalf to help you take advantage of all appropriate legal remedies to hold the insurer or agent who defrauded accountable and to help you recover for all financial loss. Give us a call to find out more about how California and Santa Clara County insurance and elder abuse lawyers at our firm can help.

How Can You Avoid Insurance Fraud?

There are a number of different ways that you can try to fight insurance fraud and protect yourself from becoming a victim of unscrupulous behavior by insurance companies or insurance agents. You should:

• Watch for red flags. The National Association of Insurance Commissioners warns that an aggressive agent or broker who pressures a consumer could be perpetrating a scam. If an agent pushes you to sign up for a policy right away and claims you could experience much higher premiums if you wait, this high-pressure sales technique may be a sign of fraud.
• Compare premiums carefully. While low premiums are good, you don’t want premiums that are too good to be true. If a policy is being sold at 15 percent to 20 percent less than those from other companies, it could be a sign of an insurance policy that will never actually pay out.
• Make sure you can reach the insurer on the phone: If a fake insurance company has been set up or a scam is being perpetrated against you, you may not be able to get ahold of an insurance company representative. If you cannot find a listed telephone number for the insurer or the agent you are working with, or if you have a hard time getting through on the phone, this could be a major indicator of a scam.
• Check with your state insurance department: Before you sign up for a policy or pay premiums, consult with your state insurance department to ensure that the company offering the policy is legitimate and licensed.

While taking these steps can reduce the risk you’ll become a victim of insurance fraud, the sad fact is that anyone can be tricked by an insurer’s failure to follow regulations or make disclosures and anyone can be tricked by a bad insurance broker who provides inaccurate advice.

If you find that you are facing loss due to insurance fraud, you should reach out to the California and Santa Clara County insurance and elder abuse lawyers at Evans Law Firm right away to find out how our firm can put our decades of collective experience to work for you.