Unfortunately, there are a number of scams out there when it comes to securing car insurance. The most common is when small insurance companies claim to have less expensive rates than the larger companies. This scam is called low-balling, and in it, the insurance company offers a too-good-to-be-true rate to the customer. Soon after the customer signs the policy, they receive a notice about a "company rate error," negating the initial come-on rate. The company demands the higher payment under threat of insurance cancellation.
Avoid this scam by choosing established, well-known insurance companies. Most often, scammers operate small companies without a physical location, or one that is not easily found.
Another scam involves a fake insurance company. A scammer will set up a company that has the appearance of a legitimate insurance company, take payment, and then send out false insurance cards. Only when the customer attempts to file a claim does he or she find out that the company doesn’t exist.
To avoid this scam, if you’re dealing with a company you’ve never heard of before, always check with the Better Business Bureau before doing business with them. Also, a quick Internet search will often show any customer complaints that have been made against the company, and can tip you off to any questionable business practices.
And speaking of the Internet, be cautious when buying auto insurance online. The web is the easiest place to set up low-ball scams, and some scammers even create fake insurance company web pages to steal your personal information, such as your driver's license or Social Security number. Never provide this information over the Internet unless you know for sure you’re dealing with a reputable company.
J.K. Olivieri Insurance Agency, Inc. is an independent insurance agency founded in 1979 which represents a number of major insurance companies. Our mission is to protect our clients’ financial future. We feel our role as an insurance agency is to assist our clients in selecting the best possible programs to fill their specific needs. In doing so, we shall research and present our clients with the best possible programs available at the best possible prices.