Relying on warranties and insurance policies provides us with peace of mind when facing high costs for things beyond our control. However, the necessity we have as consumers to feel protected in our homes, vehicles, and with our medical health leaves vulnerabilities that scammers can take advantage of easily.
Scammers will promote fake warranties and insurance plans that will feature low rates and comprehensive coverage. When working with a budget, these less-expensive offers are hard to pass up. However, paying for these monthly will only become an issue when you need the policy to help you manage an issue. It's at that point that discovering the policy is fraudulent will the financial loss be felt even more.
The allure of these policies are often made more difficult to refuse when scammers position these as exclusive or limited-time offers. Those terms can often make a consumer act quicker and do less research in an effort to not miss out on the better price.
Unfortunately, the scammer is only interested in your money and information. If their limited-time offer doesn't get you to sign up, they can use high-pressure tactics and persuasive language. They will rely on your concerns about emergencies and disasters and needing the policy sooner than you may expect. They may even claim to be from legitimate companies or government agencies help sell their product as more trusted.
Fake warranty and insurance scams, however, usually have devastating consequences. Not only are you left vulnerable to financial loss in the event of what should be a covered incident, but these plans also expose you to identity theft and fraud.
To ensure the attractive low-rates you're being offered are actually for a valid policy, you need to take time to do research. Be careful if the offer is coming to you unsolicited or from a company you are unfamiliar with. Search for reviews of the company and the policy being offered. Check with the Better Business Bureau to see if there are any complaints on file for the company.
A legitimate company will allow you the time to consider your options and will answer your questions without issue. If at anytime you are feeling overly pressured or sense the agent is growing frustrated or angry - do not continue with them. Even if they are a valid company, you do not want someone who cannot handle questions to be assisting you when you need help from them. However, anger and frustration are usually key indicators that it is a scammer.
In the end, when it comes to warranties and insurance policies, if it sounds too good to be true, it probably is. Don't let the promise of cheap coverage blind you to the risks that come with fake warranty and insurance scams. By staying informed, exercising caution, and trusting your instincts, you can protect yourself from financial loss and avoid falling victim to these fraudulent schemes.