The Value of an Independent Agent

Insurance scams are becoming more and more prevalent, thanks to fraudsters’ efforts to perfect their skills in order to take advantage of insurance consumers who want to protect their assets. Incidentally, cybercrime is increasing as well, which correlates with the rise in insurance fraud and scams. Thankfully, if you know what to look out for and learn the tactics of the criminals, you can protect yourself and your insurance premiums as well. It’s also important to know what protections you can put in place in case you do become a hapless victim of an insurance scam, despite your best efforts to educate yourself and protect your assets. Read on to learn more about insurance scams and determine if you are at risk and what you can do to reduce your risk:

What is Insurance Fraud?

Insurance fraud is a type of crime that victimizes insurance companies and insurance consumers at an ever-growing pace. In fact, the Coalition Against Insurance Fraud estimates that around $80 billion in fraudulent claim payments are made annually. Furthermore, the Federal Bureau of Investigation (FBI), found that insurance scams and fraud cost the average family between $400 and $700 annually in increased insurance premiums.

Common Types of Insurance Scams

There are many types of insurance scams that have become increasingly common. The following are just a few short examples of what to look out for:

• Shady Contractor: This scam happens if your home is damaged in some way. The “contractor” comes up to your home, gives you a low cost for your repairs (likely significantly lower than other contractors).Then, they pressure you to sign a contract or pay up front for the work. The shady contractor will skip town, and you will never see them again, or they might begin the work but leave it undone or do inferior work with substandard materials.
• Unprompted Tows: This scam happens after you have been in an accident, or you are broke down on the side of the road, really any scenario where your car is unable to drive. Suddenly, a tow truck driver shows up miraculously, unsolicited, seemingly saving the day. They tow your car and the next thing you know you are hit with an inflated bill perhaps including services you never asked for or even received.
• Invisible Passenger: This scam occurs after you have been in an accident. Let’s assume you didn’t have the police come because it was just a small fender bender. So, you exchanged information with the other driver and off you went. Then, you find out from your insurance company that the passenger of the other car is filing a claim with your insurance company for injuries sustained in your accident. Thing is, there was no passenger in the other car, but you don’t have a police report or witness statements to prove this to be true.

To avoid this particular scam, we recommend filing a police report directly after an accident to avoid he said/she said. We also recommend that the client call their insurance agent immediately, as well as take photos of each car in the accident, the licenses plate, insurance card, and driver's license of all parties involved if for some reason a police report isn’t made. You may even want to record a verbal statement on your phone of the other driver if they are admitting fault at the scene.

Steps to Take to Protect Yourself

Thankfully, you aren’t helpless in these situations and can make yourself much harder to victimize by taking the following precautionary steps:

• Know Your Policies: You should know your current insurance policies well. Print out copies and have them on hand should you need to reference them. The point is to know what you are paying for, what is covered, what isn’t and what you can expect to be reimbursed if you have to file a claim.
• Pay Only for Services You Have Received: Later, we will look at some common scams to look out for, but know that many scams have to do with charging you and/or your insurance company for services that you either didn’t request or never received. Therefore, be sure to withhold payment for any potentially dubious service.
• Know and Trust Your Insurance Agent: Finally, in order to protect yourself from insurance scams, one of the best steps to take is simply knowing your insurance agent and trusting them. If you know your agent, then you will be less likely to fall victim to a scam where someone is pretending to be your agent or a representative from your insurance company.

Scams Are on The Rise…Are You at Risk?

Many people fail to report a scam once they have become a victim simply because they are embarrassed, felt it was futile or didn’t know how or where to report it. However, reporting establishes accurate statistics on the number of people affected, which in turn alters the way the FBI and other law enforcement agencies devote resources to breaking up fraud rings. In most cases, it’s best to begin with the police (a must if you want to make an insurance claim on stolen property) and report compromised information to your bank and insurance provider or agent as soon as possible.

Protect Yourself and Stay Safe

By taking the advice outlined above, you will be much less likely to become a victim of these increasingly common insurance scams.

When it comes to protecting the people you love and the assets you've worked hard to build...you owe it to yourself to consult with the best. You have choices, and the choice to work with an independent agent brings clear advantages you won't find with other options. Independent agents are uniquely qualified to with the knowledge, skills and tools to defend your family against crisis and make sure your business is properly protected.

What Is an Independent Agent?

An independent agent is an insurance agent who has access to multiple insurance carriers, allowing them to shop around and find the best plan at the best price. This is in sharp contrast to a captive agent, who carries products from only one insurance provider. Working with an independent insurance agent provides you with more options, better service and many other benefits. These agents represent YOU and the insurance carrier, not only the insurance company, much like a mortgage broker helping you find the right loan.

What are Benefits of Working With an Independent Agent?

1. Superior Customer Service

One of the most notable benefits of working with an independent agent is better customer service. When you reach out to your independent agent, you will be dealing with an actual person, not a recording. These agents are typically employed locally, allowing them to be there with you personally through all of the stages of your life and/or business. When you buy a home, start a new company, remodel your house, have children and teach your teens to drive, this agent will be available to help you with your related insurance needs. In addition, independent agents tend to be more responsive, helping their clients through the claims process. Captive agents often focus only on acquiring new customers, passing off their clients after the sale has been made. Independent agents, on the other hand, remain involved throughout the duration of your relationship with the insurance company.

2. Personalized Coverage Reviews

Independent insurance agents care deeply about their clients. They want to make sure your needs are met at all times, so they take the time to review your coverage on a regular basis. During each review, your independent agent will make sure nothing has changed and that your coverage does not need to be updated. If updates are required, the independent agent will sift through various company’s rates and coverage options to find the best policies for you. Because they can work with more than one insurer, independent agents can provide a wider variety of coverage options and price points to their clients. In addition, they typically have a better understanding of how various insurance products work, allowing them to find a better fit and value for your needs.

3. Better Knowledge and Expertise

Independent insurance agents are licensed experts in their field. They have in-depth knowledge about local insurance needs and options, allowing them to provide you with a higher level of support. An independent insurance agent's career is not based on selling a particular plan to customers in order to make one company money. Instead, their career is based on assessing each customer's needs and finding the right plan to fit with those needs. They know you, they know the area and they know your community. Independent insurance agents understand that their work is just beginning when you purchase your policy. They are personal advisors, making themselves available year-round to answer your questions, make recommendations and modify your coverage if needed.

4. One-Stop Shop

Every client is unique. There is no one-size-fits-all insurance option for families or businesses. Independent agents understand this concept. They see the big picture, and they know how to determine which coverage options are best for you. In addition, they are also able to research different companies and find the best value for the best price. Because independent agents are local, they have established connections in the community. As your needs change, the same agent can continue to represent you, adapting right along with your family or business.

5. Long-Term Cost Savings

Independent agents take the time to ask questions and familiarize themselves with your unique situation, ensuring that the coverage they design will do what you expect and be there when you need it. They don't cut corners or hide expenses in order to make a deal. This leads to long-term cost savings for customers. Winter-Dent has been serving clients since 1912. We are an independent agency that has built a business on taking care of each individual customer. We put you first...we are “humans helping humans." Contact us today to learn more.