Is your insurance agent fooling you? Beware!
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Is your agent fooling you? Find out before it’s too late
Finding the right insurance agent can be difficult, especially when you consider that they’re supposed to be trustworthy and capable of helping you choose the best insurance policy for your needs.
Unfortunately, some insurance agents are not who they claim to be, and many will do anything to earn money from unsuspecting consumers—including cheating you out of your hard-earned cash and pocketing it themselves. Here are some of the most common ways through which insurance agents cheat people.
A lot of insurance agents like to lowball customers and give them a lower rate on their auto insurance than what’s fair for the best saving plan.
When you go to renew your policy, though, they may try to jack up your rate or even cancel your policy. Watch out for these swindlers; it’s best to shop around with multiple agencies every year instead of staying with just one agent for years at a time. Sometimes it pays off big when you find an honest agent in an industry full of liars.
While you might think of insurance agents as people who protect your assets in case of a medical emergency, their role is a lot more complicated. Insurance companies make money by collecting premiums from customers and then paying out claims when bad things happen—that’s basically how they got their name.
But sometimes insurance agents don’t tell customers about certain details related to the plans that could save them money, or persuade them to sign up for plans with higher costs so they can collect a bigger commission check.
3) Failure to Report Accidents
In most cases, you’ll need to report an accident to your insurance company right away. Failure to do so can often result in a denial of the claim.
However, what if you don’t tell your insurance company about a car accident for weeks or even months after it happened?
This is precisely what some unscrupulous agents do when customers fail to reveal their accidents to their insurers immediately after they occur.
4) Failure to Pay Claims
When a person files a claim for the best saving plan with his or her insurance agent, that agent owes a fiduciary duty to that person. This means that if an insurance company does not pay a claim in good faith, then that agent is breaching his or her fiduciary duty to that customer.
When an insurance agent is selling policies, he or she must disclose to each customer what type of coverage they are buying and how it will work.
5) Unfair Rating Practices
To save money and boost their commissions, insurance agents have been known to unfairly raise your rates after you’ve made a claim.
Some carriers even require policyholders to provide evidence of a clean driving record for three years before they offer them a discount.
Never sign an application that requires you to promise not to make any claims on your policy—this is an unfair practice called rate loading, and it should be reported immediately.
6) Bait and Switch Tactics
One of the most common tactics that agents use is called bait and switch of the best saving plan. What happens here is that an agent will attempt to sell you on a cheap, bare-bones plan to get your foot in their door and then push you towards a more comprehensive or expensive option once you’re sitting down at his or her desk.
This kind of tactic is illegal, but it can be difficult for consumers to spot as they don’t know anything about insurance plans. It might be worth it to shop around for quotes from other agents before you even set up an appointment with one so that you have some idea of how much things should usually cost.
7) Misrepresentation of Policy Benefits
Insurance agents often exaggerate or mislead people about what their policy will cover, in hopes of either selling a more expensive plan or getting their customers to sign up for a life insurance product.
For example, an agent may tell you that if you die while traveling outside of your home state, your travel partner won’t be able to collect any kind of death benefit.
This isn’t always true; sometimes policies will cover death benefits even when they happen outside of your home state.
8) Misrepresentation of Facts and Figures
While we’d all like to believe that insurance agents and companies have our best interests at heart, in reality, it can be difficult to get a straight answer from them.
Sometimes you may be asked to make an investment with investment plans for child or take out an additional policy, or even sell a specific product without being fully informed of other options.
Without proper knowledge of investment plans for child on your part, it can be easy for you to accidentally sign up for something that you don’t need.
The most important thing when it comes to protecting your family is making sure that they will be taken care of if something were to happen to you. At Canara HSBC Life Insurance – Invest 4G Plan, we understand this need and offer the highest level of protection at an affordable price so that you can relax knowing that your loved ones will be well taken care of.
We have a wide range of policies available, so whether you’re looking for something simple or something more advanced with additional coverage options, we’ve got what you need!
Investment plans for child are supposed to be there to protect you in case of an emergency, but unfortunately, insurance agents don’t always work to help their customers in need — they often use them. Hence it is important to settle with a genuine one, for which you may need to spend more time in the market, searching for the right one based on reasonable quotations and a solid portfolio.