Getting scammed happens often. Whether you bartered poorly at a flea market, or failed to save a Nigerian prince, losing your money is humiliating. Unfortunately, many Americans are cheated by their own car insurance companies. Car insurance companies make money on your ignorance. They often under-compensate, and will leave you high and dry when you need them most. Here are a few common scams by insurance companies.


Finding a car insurance premium that is right for you is difficult. Insurance companies know that. Initially, they will make the decision¬†easy for your, typically offering the cheapest quote available. The rate is so good, that it’s difficult to turn it down. Months after you excitedly signed the contract, you get a notification saying that there was an error in your original rate, and you aren’t paying enough. The insurance company will increase your rate. They¬†assume you will pay the increase for two reasons:

  1. You have an emotional attachment to the insurance company, and won’t switch providers or
  2. Getting a new policy is a hassle and you don’t want to deal with switching providers.

If this happened to you, don’t be afraid of switching your provider. Sometimes it’s worth the hassle.

The Bait and Switch

Again, preying on your ignorance, a company will initially offer you a low rate. However, on the eve of signing the contract, the insurance company will inform you that the rate you were offered just expired. The company will tempt you with a different, more expensive policy. Your immediate response should be, “I have no loyalty.” Find a policy elsewhere. Don’t ever feel obligated to an insurance company.

False Insurance Agents

It’s easy to encounter insurance imposters, especially online. They might offer you a policy at an incredible rate. They might deceive you with forged insurance documents that seem legitimate. They could claim that they are an emerging company, or one that nobody has ever heard of. Be weary of these types of insurance companies. Research companies you are unsure of. If you’re involved in an accident, the last think you’ll want is to find out you never had insurance to begin with.

The attorneys at Hansen Injury in Idaho are experts in dealing with insurance companies. If you feel like you have been cheated, under-compensated, or under-represented call us and we will fight to get you the compensation you deserve.