Hang up when anything seems fishy. BestForBest/Shutterstock
Posted on 04/15/2025 9:20:06 PM PDT by SeekAndFind
Let’s face it—insurance is already one of those necessary evils, like flossing or assembling IKEA furniture. You pay for it, you hope you never have to use it, and when you do, you cross your fingers and hope the process isn’t as painful as stepping on a LEGO. But just when you think you’ve got it all figured out, scammers show up with their trickery, ready to part you from your hard-earned cash faster than you can say “deductible.”
Hang up when anything seems fishy. BestForBest/Shutterstock
Here’s the good news: Knowing what to watch for can help you avoid falling victim to the most common insurance scams. Let’s break them down, one shady scheme at a time.
You’re scrolling online, minding your business, when you see an insurance deal that seems too good to be true. Low premiums, full coverage and “instant approval.” Sounds great, right? Until you file a claim and realize the company doesn’t actually exist.
How to Spot It: If the company is unheard of, do some digging. Legitimate insurers are licensed and regulated by state insurance departments.
Check reviews and complaints on the National Association of Insurance Commissioners website: www.naic.org.
If they demand full payment upfront in gift cards or cryptocurrency, run.
You’re driving along, obeying all the laws like the responsible adult you are, when suddenly—BAM! Someone slams into your car. Except, surprise! It wasn’t an accident at all. Scammers stage accidents to make false insurance claims, often faking injuries and vehicle damage for maximum payout.
How to Spot It: Be wary of drivers who wave you into merging and then magically “don’t see you.”
If witnesses appear suspiciously fast or seem too rehearsed, take note.
Always call the police for an accident report. Scammers will try to avoid official documentation.
In this nightmare scenario, scammers promise a comprehensive health insurance plan at an unbeatable rate. Only when you actually need medical care do you discover the “coverage” you bought is as empty as a gas tank on payday.
How to Spot It: Beware of pushy salespeople who promise “limited-time offers.”
Verify that the plan is registered with Healthcare.gov or your state’s insurance marketplace.
If a plan isn’t Affordable Care Act-compliant but claims to cover preexisting conditions, that’s a major red flag.
An agent takes your insurance payment but never sends it to the company. Instead, they pocket the money and leave you uninsured—until you try to file a claim and find out your policy was never active.
How to Spot It: Make payments directly to your insurance company, not to an individual agent.
Confirm your payment was received by checking with your insurer.
If your agent is suddenly hard to reach after taking your money, get suspicious fast.
A scammer poses as an insurance agent and tells you a long-lost relative (whom you barely remember) left you a hefty life insurance payout. But first, you just need to pay a small “processing fee” to claim it.
Spoiler alert: There’s no inheritance—just a scammer laughing all the way to the bank.
How to Spot It: Real insurance companies don’t ask for processing fees upfront.
If the “agent” demands personal banking details, it’s a scam.
Check with the actual insurance company before believing any inheritance claims.
Scammers pose as Medicare or Social Security representatives, claiming you need to verify or update your information to keep your benefits. In reality, they’re just after your Social Security number to commit identity theft.
How to Spot It: The government will never call you out of the blue asking for personal information.
If someone pressures you to act immediately, hang up.
If in doubt, call Medicare (1-800-MEDICARE) or Social Security (1-800-772-1213) directly.
After a natural disaster, scammers show up offering to help you file an insurance claim. They promise to handle the paperwork, negotiate with your insurer and maximize your payout—for a fee, of course. Once paid, they vanish faster than your motivation to exercise after New Year’s.
How to Spot It: Your insurer provides claims assistance for free.
Never give personal information to unsolicited “insurance advisers.”
If they demand payment before doing anything, it’s a scam.
Final Thought: Trust but verify.
Insurance scams are an unfortunate reality, but with a little vigilance, you can stay ahead of the scammers. If something feels off, trust your instincts and double-check everything. When in doubt, contact your state’s Department of Insurance or the National Insurance Crime Bureau (www.nicb.org) to verify legitimacy.
Because the only thing worse than dealing with an insurance company is realizing you weren’t actually dealing with a real one at all.
On the alert for insurance scams....
Found one:
“Obamacare.”
I don’t always call insurance companies, but when I do it’s to let them know about the bomb in their building.
5.56mm
two settings
- do not disturb
- VIP contacts
😆
Insurance companies are regulated by the state and they are getting away with murder I’m waiting for them to collapse
“Insurance companies are regulated by the state.”
Except they are not, The states are not regulating them as they should be. They are turning their heads and letting them do anything they like. The only ones the state regulates is the consumers by forcing them to have insurance as it is with autos.
Right now one of my kids has health insurance through work that comes from an out of state company. This company will not pay out for services at all, and now providers will not even take it anywhere in the state because of this. It is a fraud and scam from both her employment and the insurance company.
Turned it into the State and all the State did was suggest that after 10 years she quit working there and go to work somewhere else. They refuse to do anything about the insurance company operating as a complete fraud and scam in the state when they should be shut down and not allowed to operate in the state at all for selling a product that is never delivered.
At a family dinner yesterday we had a discussion about whether or not Home Title Lock insurance is a scam or not.
It seems that they don’t “lock” anything; they only monitor documents (something you can do yourself free at the Hall Of Records or similar), and alert you AFTER the deed has been done. Supposedly, it’s rare.,
Events occur before the home is stolen that would/should provide a heads-up that something bad is in the works.
I Googled “is home title lock a scam”, and got info that says it is, and that it isn’t.
Wondering if anyone here has dealt with the problem.
“two settings
- do not disturb
- VIP contacts”
What does that mean?
The big scam is not shopping for insurance. I do that every 2-3 years, auto insurance was cut in half using Progressive this year.
I have already had the fake life insurance scam tried on me. Got a phone call, the man said he would come out to my residence, I told him if he did, the cops would be there waiting. Never heard anything more…..
315 area code.
Non stop every day calls about my insurance.
Block ‘em, doesn’t matter...
Same area code, different number.
Beware
Not to mention all the text and email, scams/phishing attempts...insurance is a miniscule part of the big picture.
When I approach an interchange and am taking the off ramp, if someone is entering I will blink lights to let them know I see them and drop in behind them. But every so often they'll stop instead of merging. Maybe that "be wary' is the reason. So I'll try to be less pi$$ed at them.
not being alerted to any calls except for those in one’s VIP list — generally works well
Oh. I was thinking emails, etc., on PC. You were referring to cellular. Now it makes sense.
I still don’t see how home titles can be stolen. Why would anyone do that online?
Doesn’t it have to be done in person? Notarized?
Last used vehicle I bought i had to register in person once I got the title.
All good questions. I don’t understand it myself.
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