The insurance industry is designed to protect you against a compromising situation. But what happens when it turns on you and your protection plans backfire? What happened and where did it all go wrong?
The insurance industry is a vast field. The business calls for a lot of threats to itself, including scams. This is something contradicting since insurance is supposed to provide cover for you when your safety is risked in terms of car insurance, travel insurance, and health insurance. Hence, there are many scams in the insurance market that we need to be aware of when looking for insurance. Let’s take a look at some scams, common in the insurance industry.
Scam #1: Agents Charging More Than Premium Promising Extra Cover
Oftentimes, there are agents affiliated with the insurance companies who deal with the clients and sell policies. What you need to remember is that they already get paid their fair share of commission from the insurers. They are not meant to promise you anything for extra money because you will only get the coverage that is mentioned in your policy.
An easy way to avoid it is by simply ignoring the false promises and only paying the premium against your desired policy. Or you can skip the agent altogether and directly contact the insurer to go through the process without getting scammed. This will also save you from being underinsured in case the agent tried scamming you by selling you minimum coverage and keeping the rest of the money to themselves.
Go through the policy carefully and make sure everything you need is covered. Cross-check your premium from the insurer themselves and ensure that you are not paying anything extra above the mentioned premium.
Scam #2: Selling Unnecessary Policies
The more policies an agent sells the more commission he gets from the insurer. They try to mislead you into buying more insurance saying that different age groups need different travel or health policies or selling you multiple policies for your car serving different purposes rather than selling you a comprehensive policy that covers everything.
We have many topics discussing different policies and the purpose they serve in detail, so go check out the blogs and educate yourself before buying any policy. Most of the time you always need a single policy to cover all your requirements.
Another way to combat this is by asking for options and going through all of them thoroughly. This way you will figure out which plan suits you best and you can make an enlightened decision even if it is the first time you are exposed to insurance.
Let’s Compare always work on empowering their clients in making an educated decision whether you are buying insurance through us or any other platform. We are an online insurance comparison platform working with renowned insurance companies in Pakistan. You can compare and buy insurance policies in Pakistan from different insurers and also different policies from the same insurer. We give our clients unbiased and sincere advice and work hard on earning their trust. Go to our website now and get insured!