A car insurance policy is very crucial and mandatory to buy for every owner according to the law. Car insurance policy not only covers various mishaps, theft and natural disasters that occur to the vehicle, but it also helps an individual to escape from legal obligations. A car insurance policy helps an individual to get financial aid from the policyholder during an accident or undesirable situation. But with the increase in car insurance fraud, people are losing trust in buying car insurance online. This issue has become a critical concern for both insurance companies and policyholders.
Insurance companies also raise awareness and guidance to every car owner to shield against such fraud. However, an individual must safeguard himself from such scams by staying aware and alert while purchasing car insurance. Therefore, this blog contains all the essential information that an individual can consider to stay safe from car insurance fraud, so read this guide till the end.
Steps to Buy Car Insurance Online
Buying car insurance online is one of the most straightforward and convenient ways to insure a car. It helps eliminate the hassle of going outside and weight in a queue to fill out a form. However, if you are new to the car insurance market and need to learn how to buy insurance online, follow the steps.
- Please search for the best and most reliable car insurance provider and visit their online portal.
- Navigate to the ‘car insurance’ page from their homepage.
- Fill in all the essential details, such as car RC number, email address, contact number, etc, in the designated box.
- Choose your desired policy plan and add-ons to buy with the policy.
- Look for all the essential information, and read every clause and condition carefully before making payment.
- Submit all the required documents asked by the insurance provider
- Recheck the application form, documents and other details, and then complete payment through the online payment option.
After payment, an individual may get a confirmation message on the registered number, which they must check. However, an individual must stay aware and alert while buying comprehensive car insurance online to avoid scams and fraud.
Car Insurance Frauds
A car insurance fraud is a fraud or scam by fraudulently using vehicle insurance. A fraudulent insurance provider, agent, mediator or another person engaged in the industry can perform it. Both policyholders and insurance companies fall victim to scams or frauds. Policyholders may fall in with fake insurance agents and policies and spend their money on counterfeit policies. Some types of fraud an individual may experience are fake payment beneficiaries, fake insurance policies, unrealistic add-ons, features and benefits and spurious calls.
What to Consider While Buying Car Insurance to Avoid Fraud?
Individuals need to be aware of what is happening to escape from unwelcoming events. Sometimes, buyers buy a car insurance policy without proper information and details about the fake insurance company and pay for nothing in return. Therefore, when an individual is more conscious and aware of taking the right steps while buying car insurance, it can help them avoid fraud. However, if you also want to purchase third-party car insurance online, then it would be best for you to keep the following points in mind to avoid undesirable situations and stay safe from fraud.
- Directly Connect with Insurance Provider
Sometimes, people prefer to buy car insurance from agents who mediate between the insurance company and the customer. However, not all mediators are reliable; fraudsters may convince customers to make payments and purchase insurance policies through them. Therefore, it is advisable to bypass intermediaries and directly contact the insurance company to verify the middle person’s correct information and official registration. Moreover, buying an insurance policy now from the company also eliminates extra costs that an individual may need to pay the agent.
- Fake Agents
The company assigns car insurance agents to help customers better understand the policy, its terms, and clauses without any hassle. However, not all insurance agents are genuine, and they may come with a possible risk of scam. There is a wide range of fake agents available in the market who may convince you to purchase a phoney policy; they may also provide you with the same policy documents to trust your gain. In such cases, avoid such agents and visit the official website of the company to get quotes and also directly connect to them to buy a policy online.
- Ask for a Genuine Receipt
Sometimes, people buy a policy and never ask for the payment receipt, which can lead to scams. Thus, it would be best to ask the insurance policy company for the original payment receipt online or offline. Accurate pass helps in quickly fighting against fraudsters with legal support.
- Avoid Cash Transactions
Online payments are a more trustworthy way of transaction as all the proof is available online; thus, it would be best to avoid payment in cash and go with online payment so an individual has evidence that they paid to the fraud and file a case.
- Read Documents Carefully
One of the most careless acts an individual does while buying an insurance policy is not reading clauses and terms carefully. Reading all the documents may look hectic, but it can help an individual escape fraudsters’ manipulation. You must also ask your family member to read all documents once before you sign them so you can make better decisions.
- Look out for the QR Code
The Insurance Regulatory Department and Authority of India has made it obligatory for all insurance companies to have tier QR. This QR code helps in offering complete details about the policy to the customer. However, you must ask for the QR code from the insurer to avoid scams.
Conclusion
Fraudsters typically commit car insurance fraud during the purchase or sale of the policy or when filing insurance claims. These frauds can be against a motor insurance company or an individual. However, an individual must be alert to such situations and keep all the above points in mind while buying an insurance policy.
