Looking to capitalize on the fact that the State of Illinois requires drivers to obtain a minimum amount of car insurance, many companies offer auto insurance policies throughout the state. Since there is such an abundance of auto insurance options, it is difficult to keep up with all the companies offering car insurance. Also, since many people are looking to curb spending, seeking an Illinois auto insurance policy is a smart move. Unfortunately, there are people out there looking to take advantage of the current economic climate by offering fraudulent insurance plans that appear like the real thing for a great price.

The Illinois Department of Insurance has sent out a press release warning state residents about the dangers of fake insurance. Illinois is one of a handful of states that does not have its own insurance fraud bureaus to investigate the scams. The state has to hire private companies that specialize in investigation to uncover whether or not a company is legitimate.  These same specialists work to uncover fraudulent insurance claims submitted by drivers as well.

What are some of the ways drivers can be ripped off by insurer scams? Some people simply take an individual’s premiums instead of actually using it to cover car insurance. This could go on for a while since many people will not know that their car insurance doesn’t exist until they attempt to file a claim. Other insurer scams include selling phony insurance, selling unnecessary coverage, and promissory notes.

Not all companies stoop to schemes. There are many wonderful auto insurance companies in Illinois to choose from. The Illinois Department of Insurance suggests a few strategies to help drivers weed out the good companies from the frauds.

–          Car insurance companies register themselves with the Illinois Department of Insurance. Ask if the company is registered and approved by the state. Contact the state to verify whether the company and their plan is licensed.

–          Ask plenty of questions and avoid companies with exaggerated advertising and empty promises.

–          Avoid companies that solicit to you unless you plan to do the necessary research on the company before signing up for anything. Never give out personal information unless you there is certainty that the company is trustworthy.




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