Thousands of car owners throughout the United States fall prey to auto insurance fraud every year. Being one of the most preferred auto loan providers for people with credit related problems, we have a thorough understanding of the lending market and our financial guidance has helped many people throughout the country since a long time.
The National Association of Insurance Commissioners provides detailed guidelines to protect car owners from the increasing instances of car insurance fraud. According to them, many car owners tend to ignore certain indications of probable insurance frauds and only look at the bottom line while choosing their auto insurance service. This type of ignorance may have severe consequences because car insurance is something that needs to be dealt with extreme caution.
The NAIC and Auto Insurance Fraud
National Association of Insurance Commissioners or NAIC states that staying safe from car insurance scams only requires a bit of common sense and spending some time on conducting a thorough research. Many fraudulent auto insurance companies often come up with offers that are too good to be true. It is always better to avoid these companies and their offers. Unfortunately, there are two aspects of being cheated by such insurance agents or companies. People signing up for such offers not only lose their money, but their vehicles are also left without any proper insurance coverage whatsoever.
However, there are some steps that a consumer may take to stay safe against these companies. The insurance regulation bodies for the states are well acquainted with these individuals and organizations, and it is a great idea to seek their guidance if you come across any dubious auto insurance offer. Before purchasing any new auto insurance policy, one can call the state insurance department and confirm the legitimacy of the agent or the company.
It is important to remember that even an agent working for a legitimate auto insurance company may not deliver your policy after collecting your payment. In such instances, you should immediately contact the state insurance department and file a complaint against your insurance service provider. By visiting the official website of NAIC, you can fill up an online form under the Online Fraud Reporting System or OFRS. This is an excellent system for consumers to report and identify insurance fraud.
Finally, there is no better way protect yourself from auto insurance fraud than being extra cautious and dealing only with companies that have a stellar reputation in the market. You may also seek advice from the National Association of Insurance Commissioners before deciding to deal with a company.
At Valley Auto Loans, we are an experienced team of lending industry experts committed to making life easier for consumers with less than perfect credit. Keep visiting this blog for more insightful discussions on topics relating to auto insurance fraud the financial market in general.