How to Dodge Insurance Scams: A Basic Guide

Why You Should Care

Insurance is your financial safety net. But beware—scams can tear that net apart. Let’s arm you with the knowledge to spot and avoid these traps.

Common Scams and What to Watch For

Suspiciously Cheap Policies

Example: You find an online ad offering comprehensive car insurance for just a fraction of the typical cost. Red Flags:

No official paperwork.
The agent is unsearchable online.

Over-the-Top Medical Procedures

Example: You go in for a basic check-up, and suddenly you’re getting an MRI and multiple blood tests. Red Flags:

Excessive paperwork for a routine visit.
Unexplained medical procedures.

Orchestrated Car Accidents

Example: Someone suddenly jams the brakes in front of you, causing a minor fender-bender, then claims severe damage and injury. Red Flags:

Witnesses seem a little too prepared and eager.
Minimal damage but high repair and medical bills.

Ghost Brokers

Example: An agent approaches you with an “exclusive, limited-time offer” but insists on cash payment. Red Flags:

No physical office.
Cash-only deals.

Identity Theft

Example: You get a notice of a claim for a procedure you never had, or worse, a policy you never bought. Red Flags:

Sudden changes in your existing policies.
Receiving bills or policy documents you didn’t apply for.

Tips for Keeping Scams at Bay

Check Your Agent and Company

Example: Before signing anything, look up the agent and company on regulatory websites to confirm their credentials.

Know Your Policy

Example: Read the terms and conditions, or better yet, have another family member read them too. Two heads are better than one!

Secure Payments

Example: Opt for a bank transfer or personal check over cash so you have a record of the transaction.

Keep Records

Example: Store all relevant emails, texts, and documents in a dedicated folder, digital or physical.

Get a Second Opinion

Example: Unsure about a policy detail? Consult friends, family, or even online forums to get additional perspectives.

Reporting Scams in the Philippines

If something smells fishy, report it. Reach out to the Insurance Commission or the National Bureau of Investigation through their Facebook account for how to proceed.

Stay Alert

Your best bet is to stay cautious and informed. Keep an eye out for these red flags, and always report suspicious activity. Together, we can make the insurance landscape safer and more transparent.

Feel free to get in touch with us at hello@whatinsurance.ph for anything at all.

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