The internet has been swarmed with loads of Auto Insurance companies offering inexpensive auto insurance.
Don't be tempted to grab those deals without having a thorough check on the company behind the deal.
Yes, who doesn't want a good bargain but sometimes unscrupulous companies who have no intentions to practice ethical business and just intend to take advantage of innocent consumers.
But never lose hope; with a little research you should be able to bag that inexpensive auto insurance from a well to do insurance company and be able to avoid scammers.
Here are 10 pre-cautionary tips to take before grabbing that sweet deal and discover for yourself if the deal is indeed an inexpensive auto insurance.
Search with keywords with the name of the company "name of company complaints", "name of company scam" or "name of company reviews" and the truth shall come out.
Just to be a hundred percent sure check with the Better Business Bureau if they are listed.
Check with your state insurance department if the insurance company is licensed.
Check the company, check the agent too.
Check if the person you are dealing with has a valid license you can do this with your state insurance department if the person has a valid license.
Because you should only deal with a licensed broker and no one else.
Suspect if the insurance agent asked you to pay a referral fee or any other fees.
Always bear in mind that licensed brokers do not charge any fees.
Also, if the agent asked you to pay wire transfer for premium payments.
Licensed insurance companies do not use this kind of payment methods as this is not a safe practice.
Try getting a quote from big and reputable companies, too.
You will be surprised that not all of them have expensive quotes and they might have marketing promotions as well that can provide you with that inexpensive auto insurance.
If the quote is really low and it's too good to be true, compare it with other insurance policies and see the difference of the amount, if the difference is illogically huge.
Then you should begin to suspect something is different.
The quote should always be in writing.
A legitimate company invests on letterheads, brochures, signed quotations and other ways to have a good presentation.
Scammers would like to sweet talk you, make sure If there are documents that you read them carefully before signing anything.
A legitimate broker would welcome and answer your questions as factual and as accurate as possible.
A scammer will divert your attention somewhere and slowly try to move you into a different direction.
So, ask questions.
Start with auto repair shops if they have ever dealt with them or got paid by them.
This only shows that they do process claims.
Auto shops may also give you an idea if the company is easy to deal with or how their credit standing is.
If they are bad then most likely the word will get out.