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| How to Avoid Insurance Scams |  Insurance is intended to defend you. But scams out there can make buying insurance risky. These plans can cost you hundreds or even thousands of dollars, and leave you without very important insurance defense. Here are some insurance scams that you should watch out for:
• Steal your premiums. An agent takes your premium check but does not purchase you the promised insurance. Instead, the agent steals your money. You are not defended, and may not know this until you make a claim.
• Sliding. An agent behind your back slips additional features into your policy (such as motor club membership, legal defense coverage, accidental death coverage, guaranteed renewable life, towing coverage). Hidden additionals that may be worthless can add up to $200 or even more to your premium.
• Churning. You are conned into dropping a completely good life insurance policy and purchasing an expensive one you do not need.
• Fake insurance. You are sold fake insurance often from a company that is not licensed or does not even exist.
Luckily, you can defend yourself with the help of some money-saving tips offered below:
• Call your state insurance department and make sure that both your agent and insurer have a license.
• Usually, you are supposed to make your premium check out to the insurance company, instead of the agent. You should call the insurance company within 60 days to prove you are covered.
• Read all insurance documents carefully previous to buying. Insist that the policy is obviously explained point by point clearly. Also have a trusted relative or financial expert review. Demand a point-by-point comparison with your present policy.
• Wait sometime if the price of coverage seems too low to be true.
• Go backwards if you get unclear answers to your questions, or you are pressured to sign up now because this particular deal expires only today.
• Never sign a blank insurance form. Get copies of all forms you are given.
• Be cautious of door-to-door salespeople or e-mail pitches.
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