We have suddenly found ourselves in a very different world, facing circumstances which no one could ever imagine. As we reel from the shock of these unexpected events, we need to protect ourselves from the Coronavirus and financial damages.
The pandemic could last for months, with no certainty about the arrival of its vaccine. As you gear up and take measures to protect your health, don’t forget to double-check your financial situation, take accurate steps, and prevent yourself from falling prey to scams.
Scams and frauds can happen at any time. Unfortunately, they tend to be on the rise during natural disasters, unpredictable situations, and in this case, the COVID-19 pandemic. There has been a notable increase in the number of scams and frauds during the pandemic. The insurance industry on itself cumulates a large sum of money annually. With an excess amount of money flowing through the industry, it makes it a prime target for fraudulent activities. According to some statistics, when it comes to the number of frauds recorded each year, the insurance industry is second to the banking industry.
Here are some of the most common insurance frauds that are on the rise during Coronavirus:
● False And Inflated Claims
Pandemic or not, this is one of the most common types of insurance frauds. If you get emails or calls from people who claim things that are too good to be true, unrealistic, and impractical, stay alert as you may be their target. With the economy not growing at its anticipated rate, people are trying to fool others by tempting them with insurance policies with unrealistic claims, and high returns. Please do not entertain any such false claims and call back your trusted insurance agents to confirm your policy and safety.
● Fake Insurance Companies And Agents
Fake insurance companies are committing a great deal of fraud. Due to the lockdown, going out and confirming the authenticity of insurance companies has become difficult. Taking advantage of the same, people are targeting the public, posing as insurance agents or companies who offer fake policies. You need to stay alert of frauds pertaining to premium diversion and fee churning. Premium diversion is one of the most common types of insurance fraud. Unlicensed insurance companies or agents sell insurance, pocket your premium, and then refuse to pay any claims.
● Misuse Of Data
Misuse of personal information is one of the biggest things facilitating scams and frauds. Fake insurance companies often misuse your data, access the information about the expiration of your insurance policies, and call you to renew the same, taking your money and leaving you hanging. In these cases, your insurance company or agent, too, fails to help you.
Prevention is the only cure for not falling prey to insurance scams. If you were planning on getting a new insurance policy or renewing your existing one before the pandemic happened, it is best to wait and let things settle down before taking any actions. If your situation demands immediate action, call your trusted insurance company or agent on your own and get things in order.
In case you need any guidance and help with insurance policies, call the licensed and experienced team of Skyline Insurance Agency at (540) 635-1288 (Front Royal), or (703) 368-1344 (Manassas).