Any consumer automatically assumes a product or service bought is a legit product or service. There’s quite a shock that comes with the knowledge that in fact, the consumer was scammed by a fraudulent company. This situation would be categorized as a nightmare in the world of auto insurance. Imagine being a driver who has purchased an auto insurance policy, only to find out that company did not really exist. Neither did the insurance policy.
A recent press release reported that an auto insurance company in the state of Michigan known as Fender Bender Insurance Agency was actually a fraud. The Office of Financial and Insurance Regulation (OFIR) warned the Michigan citizens concerning this deceptive company and brought up their concern of a possibility that some people may have purchased an auto insurance policy from the company. Because this company was a fraud, those drivers do not currently have auto insurance and the OFIR Commissioner advised drivers to buy legitimate coverage.
One suggestion made by the state of Michigan was whenever a consumer is dealing with an auto insurance company, be sure to visually see their business license and know what a real license is supposed to look like. By law this license should be visible inside the agent’s or company’s office building. Also, anyone who believed to have purchased a policy from this false company was asked to contact the OFIR.
After learning of this situation and hearing of others that are similar, drivers may be hesitant to look into auto insurance companies that are small and local or less popular than the major brands. They might feel it is too big of a risk to go with an unknown company who is promising very cheap rates. Despite the hesitation, there are legit, smaller auto insurance companies that are trying to get your business. Every consumer can do a few things to check out an insurance company to make sure they are real before committing and signing a contract. Below are a few ideas to help consumers figure out ways to investigate auto insurance companies.
First, consumers can check out their State’s Department of Insurance. Most states will publish what’s known as a complaint ratio of the different auto insurance companies legally acting within the state. This ratio is based off of every 1,000 claims that have been made and how well those claims were handled by the company. If your state does not offer a complaint ratio, you might be able to view another state’s complaint ratio to discover how others feel about the insurance company you are questioning. Be prepared if the company is smaller or only local, you may not find it listed in another state.
Another trusted source is the Better Business Bureau, or BBB. This company and their site can easily be accessed to determine whether or not an auto insurance company is not real. A company that openly claims to be a member of the BBB usually has good intentions to provide the offered service to consumers, however remain cautious. You don’t need to instantly dismiss a company because they aren’t listed with the BBB but proceed with caution and perform more research on the company.
There are some sites that offer customer service ratings of companies throughout the country. One site that lists ratings concerning auto insurance experiences is jdpower.com. Here they provide ratings by using stars for each category, and the most stars a category can receive is five (highest honors). Some of the categories that are listed are experiences others have had regarding billing and payment, contacting the insurer, policy offers, pricing and the overall experience. Even if your insurance company in question is legit, you’ll want to make sure they provide excellent customer service too.
Among the list of great Websites to research are also those sites that can provide the financial stability of a company. Sites such as ambest.com, standardandpoors.com, and weissratings.com will provide information regarding auto insurance companies and their financial strength. Any insurance company should be financially sound enough to be able to pay for the damages their clients cause. There is evidence of whether or not they can provide these services on these sites. If your company is listed here you will be better able to determine how great of an auto insurance company they are.
Finally, a driver can do Internet research about the auto insurance company. When comparing findings, be sure to note any comments made about the insurer. also provide a list of reported fraudulent companies that can be sorted through as well. Note that occasionally a scam artist will change the name of its company, but the basic outline of the business remains the same.
After taking advantage of these suggestions and looking through these sites, ask yourself a few questions pertaining to your findings. Note that at this point you should have seen quite a few indications of the insurance company being real. If you only found one or two pieces of information that support the reality of the company, you may want to consider moving along to another insurer. While listening to friends may also be helpful, they may be getting scammed too if they are using the insurer and didn’t gather any information beforehand.
This isn’t meant to alarm drivers everywhere that they are going to be scammed by their auto insurance company. Instead, it is a wake-up call to remind drivers that because auto insurance is a necessity in this country, scam artists will try to take advantage of the unsuspecting and naïve person. It is important to know the history of your auto insurance company, see their license, and know they will be available when you need help.
The victims in Michigan most likely did not know Fender Bender was a fraudulent auto insurance company. Unfortunately, anyone who purchased a policy and later made a claim was not attended to and probably will be required to pay for any damages on their own due to not having coverage. This would really be a tragic and frustrating experience to go through. Do your best to avoid having to experience this as well and do your research thoroughly.
It’s far better to simply purchase real auto insurance in MI and not break the law and/or risk being involved in an accident without coverage.
