Whenever you are out looking for auto insurance, it is important to make sure that you do not get involved with buying fake car insurance. With the growing number of companies on the internet, chances are good that there are going to be scammers out there that are only interested in making a quick dollar without providing adequate coverage. The reason that I always emphasize reading company reviews before purchasing coverage is so that you know what other people thought of the company and can verify that they provide good enough insurance. There are many ways to make sure that you get adequate coverage with a reliable provider. One way is to simply read trusted reviews of auto insurance companies from JD Power and Associates or Consumer Reports. The reason that reading reviews will help you is because “fake car insurance companies” are not going to get any type of press – let alone reviews from trusted reviewers.
How to Spot Fake Car Insurance Websites
If you are trying to buy inexpensive car insurance online, you should be prepared for any fake auto insurers that you may come across. There are a lot of horrible looking websites out there and although not all of them are fake; there are some that are not legitimate insurance providers.
Do they have proper security features?
One quick way to spot a fake is to check to see if they have a trusted internet security symbol of approval. Somewhere on reliable car insurance websites, you will be able to see that they keep all information private (as indicated by a lock symbol on your browser when filling out quote forms). If the website you are at does not have any security features, they are probably not legitimate or they don’t value the privacy of their customers; stay away from these.
Are there reviews of the company online?
Although you may come across testimonials on the website that you are looking at for insurance, there should be other independent reviews of the company elsewhere. If you cannot find any information about the company other than what is on their own website, chances are good that they are a fake auto insurance provider. For example, I have reviewed companies like Tesco car insurance and Budget Direct car insurance because they are legit providers; I don’t waste time reviewing fake companies or even hunting them down – it wouldn’t be worth my time. Reviews are essential and if a certain company has none, then they are probably not a good idea to trust for your car insurance coverage.
Read the website for details
Often times fake car insurance websites won’t have adequate information regarding the policies and services that they provide. Most authentic, trusted providers will have a hotline that you can call for more information and you will be able to schedule a meeting with a company agent if needed. Additionally, there should be documentation (usually in the format of a “.pdf” file) that you can download and read through to find out more regarding the types of insurance that they provide. If a particular website does not have good details and just has a form to fill out quotes, it would probably be a good idea to stay away.
Why Do Fake Car Insurance Companies Exist?
Most of the time, these types of “fake” companies are set up with the goal of either data mining or making a quick dollar. It is not right at all, and although many are regulated online, there are some that manage to get traffic. If you ever sense that you are dealing with a fake insurer, it would be smart to go through the process of finding out more information about them so that they do not get you into any trouble (e.g. financially) or hurt anyone else in the future that comes across their website.
To make quick money
Many of these companies exist for the sole purpose of making quick cash; they are not concerned with providing legitimate coverage. The primary way that they make money is by having people go to their website and give up personal information (including name, address, and credit card number). Whenever you give up your credit card number to a fake company, there are many ways that they can abuse your finances. They may send you hidden billing statements or may charge you for things that you never agreed upon. Another way that companies may make quick money are by charging people for an insurance policy and then never providing coverage when the person needs their insurance (e.g. in an accident).
Unfortunately, there are fake car insurance companies out there that are set up for the sole purpose of data mining. Most of these companies gather information about people signing up for policies and then sell it to other companies. People that sign up to get a free quote may even get a real quote, but the information that they enter into forms may be taken and sent to multiple companies for informational purposes; this is something that you will want to avoid if you can. Most of these companies give out fake car insurance quotes and are not to be trusted; report them if at all possible.
How to Make Sure You Get Legitimate Car Insurance
The way to make sure that you are getting legitimate car insurance coverage is by reading reviews, meeting with a representative from that company, and reviewing their policies and terms of service. The nice thing is that if you are experienced on the internet, most fake car insurance companies are fairly easy to spot; their websites look completely different than authentic ones. One way to better determine whether a company provides adequate coverage is to compare their website to one that you already know is legitimate like Geico, Progressive, AllState, State Farm, etc.
Of course most of the mainstream, large commercial car insurance companies will have more advanced websites because they can afford them. However, most insurance companies that are legitimate will have many of the same features. At least, they should have a phone number that you can call to find out more information from one of their reps. If there is no phone number to be found and the website doesn’t have adequate security features, it would be a good idea to stay away from their coverage. When it comes down to it, no matter if you are getting a low car insurance price offer, you do not want to do business with a fake car insurance company.