Unsolicited Insurance Repair Provider Scams a Growing Problem
Insurance scams account for upwards of $30 billion in total losses to the insurance industry each year, according to NICB.org. In addition, one particular type of fraud–unsolicited repair provider scams–are on the rise.
Some common subjects for these type of fraudsters include auto glass repair, cosmetic body work, house siding and roof repair, sinkhole damage, pest damage and many others.
The NICB recommends consumers take the following steps to avoid becoming victim to fraudsters:
· Contact your insurance company first.
· Get more than one estimate.
· Get everything in writing. Cost, work to be done, time schedules, guarantees, payment schedules and other expectations should be detailed.
· Demand references and check them out.
· Ask to see the salesperson’s driver’s license and write down the license number and their vehicle’s license plate number.
· Never sign a contract with blanks; unacceptable terms can be added later.
· Never pay a contractor in full or sign a completion certificate until the work is finished and ensure reconstruction is up to current code.
· Make sure you review and understand all documents sent to your insurance carrier.
· Never let a contractor pressure you into hiring them.
· Never let a contractor interpret the insurance policy language.
· Never let a contractor discourage you from contacting your insurance company.
