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Insurance Scams
July 08, 2015

Whether you’re in the comfort of your home, working, or on the road, being fully aware of scammers is extremely important. In the event a scam slips by you, it is possible to recover, but being able to recognize a scam is the most effective way to fight crime. Risk mitigation is a critical component of financial planning.

The most common insurance scams involve telemarketers or door-to-door salesman trying to finagle your personal information out of you. Be cautious of anyone who approaches you asking for your credit card numbers, Social Security number or Medicare account numbers. Most legitimate companies and government agencies will only ask for this sensitive information if you contact them asking for help. Unless you are absolutely sure you’re dealing with the real thing, don’t divulge any personal information.

Anyone who has tried Obamacare knows it’s confusing to work with. Scammers take advantage of peoples’ vulnerability when dealing with this program. A common mistake people make when navigating Obamacare is giving in to those offering to “help” you with the program for a price. The real Obamacare navigators will help you for free.

A new, but prominent form of insurance fraud is the fraudulent car accident. The only sure way to avoid one of these scams is to avoid driving completely. If for some reason you have to drive knowing what steps to take is extremely important. We are obviously making light of a serious issue. If you suspect you were the victim of a staged accident call the police as well as your insurance company. Take as many pictures as you can and do not admit guilt to anything at the scene. It’s also a good idea to keep a pen and paper in your car so that in this unfortunate scenario you can write down the following information, which could potentially help you win in a court case.

  • Driver license number
  • Vehicle registration information
  • Car insurance information
  • Name, address, and phone number
  • A physical description of the driver and all passengers in the other car

Senior citizens beware! You are especially vulnerable to insurance scams because con artists may perceive older people as easy to intimidate. The easiest and most important way to avoid scams is to trust your instincts. If something feels off anytime while you are divulging personal information or remitting payment, ask a lot of questions and don’t be afraid to ask for a supervisor.

Here at IDA, we pride ourselves on education and on helping our clients navigate the vast risk mitigation strategies. Incorporating insurance into a comprehensive Financial Plan is an excellent way to accomplish long term goals.

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