Most people do not spend tons of time learning the ins and outs of the insurance world. This makes sense because insurance is a complex subject. Unfortunately many people use these facts to take advantage of consumers. From online scams to phone misrepresentations, we are going to go over some of the most common insurance scams in the market today!
The biggest take away from this post is that ALL of these scams can be avoided if you use a highly reviewed, local insurance agent like Georgia Health Insurance!
Scam 1: Selling your contact information
I cannot tell you how many times we have been contacted by people that have endured the onslaught of having their information sold to online insurance agents. If you answer an advertisement, click on a random link about insurance or visits any website where you do not know if the company is local and has a good reputation, STOP! Do NOT give them your contact information via a online form. Chances are they will sell your information to dozens of different agents and you will receive tons of spam calls, texts and emails. Even if the website seems legit, if they are not a local company there is a good chance that your information will get sold.
Scam 2: Misrepresenting the benefits, network or type of policy
The biggest culprits here are again companies that are spending a lot of money on ads. Facebook, Google, YouTube etc…, companies that spend a lot of ad money need to recoup those costs. Sadly many have resorted to playing fast and loose with the facts of what they are selling. Here are some common misrepresentations:
- Telling you that a policy is a “Major Medical” policy when it is not. This is VERY common. In Georgia this usually takes the form of telling people that there are major medical plans that offer a PPO. This is just not true for individual health insurance in Georgia. Usually they are selling limited benefit plans that you have to dig into page 20 to see that it has a limit on payout. This is a big deal as most people do not realize they have been tricked until they try to use their benefits and services are not covered.
- Many insurance agents or companies will also tell people that preventative care is covered when only CERTAIN preventative services are covered. For a true list of what must be covered in order for a policy to be major medical you can go here: https://www.healthcare.gov/coverage/preventive-care-benefits/. Many scam policies will only select a few preventative services that they cover. Consumers usually don’t find out what is NOT covered until they try and use the insurance for a service they receive, by then it is too late.
- The last common trick is to misrepresent the company they are selling you. Many big insurance companies sell their network and let other, smaller insurance companies use it on their plans. When you hear that you are buying a major medical plan with Aetna, Cigna, UHC, Humana, etc…in Georgia, understand that you are not actually buying a plan with one of those companies. You are buying a plan with some other insurance company that uses the network of the big company. The big company will have nothing to do with the plan benefits or the ability of the plan to actually pay claims. Beware!
Scam 3: Not knowing the insurance laws, regulations or market in your state.
Insurance plans, coverage, carriers, laws, networks and regulations can vary wildly from state to state. The risk you take when contacting someone from a Facebook ad or other source is that they are not local and will not be able to help you get the best product in your state. Usually these companies just run you through a computer software program and sell you whatever pops out.
Another downside of this is if the company or agent sells you a bad product, you likely have no recourse as they are across the country and have no local reputation to uphold.
Scam 4: Selling unknown and weak companies
While this may not be an outright scam, it is a dishonest practice to sell a unknown or weaker company without letting the customer know the dangers. This is usually combined with Scam 2 (trying to pass the product off under a different company name due to network). An insurance company is only as good as their ability to pay claims. You do not want to be left high and dry when you have a big insurance claim!
The best way to mitigate the chances of getting a bad deal on your insurance is to use a trusted, local agent!
Why take the risk? Search on Google and find an agency that has good reviews! Find one that is based in your state, that knows your rules and regulations and that has SOMETHING TO LOSE if they do not treat you well (a reputation)! Google is easy to use and can save you TONS of time and money.
Georgia Health Insurance Inc. currently has over 130 5 star reviews on Google! Get peace of mind knowing that your agent cares about you and will do everything in their power to help you get a good plan at a good price! Contact us Today!
