Spotting Legit Insurance Calls: What To Know And Ask

Health insurance scams are common, and scammers are always looking for new ways to steal your money and personal information. They use familiar techniques and prey on people's confusion about insurance plans to trick them into giving up valuable information, which can lead to identity theft. Scammers may impersonate insurance companies, Medicare, or government agencies and urge you to take immediate action to avoid negative consequences, such as losing your health insurance coverage. To protect yourself, it's important to know the warning signs of a scam and be cautious when giving out personal information. If you're unsure whether an insurance call is legitimate, you can confirm the details, do your own research, and contact the insurance company or government agency directly to verify.

Characteristics of a Legitimate Insurance Call

Be wary of unsolicited offers

It is important to be vigilant and cautious when receiving unsolicited offers from insurance companies. Here are some key points to keep in mind:

Be cautious of unexpected calls, emails, or texts: If you receive an unsolicited call or message from someone claiming to be from an insurance company, Medicare, or a government agency, be suspicious. Hang up immediately and contact the relevant organization directly using the official contact details from their website or your records. Do not call the number that appears on your caller ID, as scammers can manipulate this information.

Verify the legitimacy of the caller: Before providing any personal information, confirm that the caller is a legitimate representative of the insurance company. Ask for their name, company ID, and government ID, and then contact the company directly to verify their employment. You can also check the National Association of Insurance Commissioners (NAIC) database, where you can look up licensed insurance agents using their NAIC number.

Research the insurance company: Conduct online research about the insurance company or agent. Search for reviews, complaints, or scam reports associated with them. Check their ratings on reputable websites like A.M. Best, Moody's, or Standard & Poor's. Additionally, contact your state insurance department to verify their licensing and standing.

Resist pressure to act immediately: Legitimate insurance companies should be willing to provide written information and give you time to consider their offers. Be wary of high-pressure sales tactics or threats of missing out on special deals. Take your time to review the details, ask questions, and consult with people you trust before making any decisions.

Protect your personal information: Never provide sensitive personal or financial information over the phone unless you are certain of the caller's legitimacy. Be cautious of callers asking for your Social Security number, bank account details, credit card information, or passwords. Remember that legitimate healthcare providers already have your personal information and will not ask you to provide it.

By being cautious, vigilant, and informed, you can protect yourself from potential scams and ensure that you are dealing with reputable insurance companies.

Verify the caller's identity

Verifying the caller's identity is an important step in ensuring that you do not fall victim to fraud. Insurance companies need to follow strict legal requirements on customer verification, but this can be a lengthy process. Advances in technology have made it easier for fraudsters to breach systems, so it is important to be vigilant. Here are some ways to verify the identity of the caller:

Ask for Personal Details

Ask the caller a series of questions to confirm their identity. This could include their name, date of birth, insurance policy number, and group number.

Request Photo ID

Ask the caller to provide a form of photo identification, such as a passport or driver's license. They can send a picture of this via email or text message, or hold it up to a video call.

Verify with the Insurance Company

Contact the insurance company directly, using the official contact details listed on their website. Do not use any contact details the potential scammer may have provided. Ask the insurance company to verify the caller's identity and confirm that they are indeed an employee.

Use AI-Driven Solutions

AI technology can be used to verify a person's identity without compromising security. This can include scanning and verifying documents and facial recognition. Some applications can prompt users to allow access to their microphone and camera to verify their identity.

Trust Your Instincts

If you are suspicious of a caller, do not provide any personal information and end the call. It is better to be cautious and verify the caller's identity through other means than to put yourself at risk of fraud.

Check for spelling errors

Spelling errors in emails or text messages can be a tell-tale sign of a scam. Legitimate companies usually have a team of professionals who write and review their communications, so spelling errors are rare. On the other hand, scammers often send out messages in bulk, with little regard for spelling and grammar. They may also be operating from a non-English-speaking country, which can result in spelling errors.

If you receive an email or text message with spelling errors, it's important to be cautious. Do not click on any links or provide any personal information. Instead, contact the company directly using a verified phone number or email address to inquire about the message.

Spelling errors can also be used to create fake websites that mimic legitimate insurance company websites. Scammers create fake websites with similar URLs and branding to trick people into thinking they are on the legitimate site. Once on the fake website, people are tricked into providing personal information or downloading malware.

To protect yourself from these scams, always check the spelling of the URL before entering any personal information. Be wary of URLs with extra words, misspelled words, or hyphens. For example, a scammer might register a URL like "insuranccompany-online.com" to mimic the legitimate website "insurancecompany.com". Always verify that you are on the correct website before providing any sensitive information.

In addition to checking for spelling errors, there are several other steps you can take to verify the legitimacy of an insurance call or message. For example, you can ask for the caller's name and ID number and then call the company directly to verify their identity. You can also research the company or agent by checking their ratings on reputable websites and looking for any complaints or negative reviews.

Research the company

Researching the company is a crucial step in determining whether an insurance company is legitimate. Here are some detailed steps to guide you through the process:

Website and Licensing:

Start by visiting the company's website. A legitimate company will have a professional and well-designed website with clear and concise information. Check for any red flags, such as a lack of contact information, poor grammar, or incomplete details.

Next, verify the company's licensing. Contact your state's insurance department or regulatory agency to confirm that the company is licensed to operate in your state. Most states have online databases or telephone assistance to help you verify licensing. You can also refer to sites like A.M. Best, which provides ratings and requires a free membership login to access insurance company information.

Ratings and Reviews:

Check the company's ratings on reputable sites like A.M. Best, Moody's, or Standard & Poor's. These ratings give you an idea of the company's financial health and stability. Additionally, look for customer reviews to see what others think of the company's services and claims handling.

Policy Details:

Don't forget to review the insurance policy thoroughly. Read the fine print, understand the coverage offered, and be wary of any hidden clauses or additional coverage that you didn't request. Understand the claims process, including how to submit a claim, the steps involved in resolving it, and how long it typically takes.

Compare and Ask Questions:

Talk to people you trust about their experiences with insurance companies and agents. Understand why they prefer their current insurance provider and what factors they consider essential in an insurance company. When speaking to a potential insurance agent, bring a list of questions to ask, including details about the policies they suggest, what those policies cover, and how claims are handled. A good insurance advisor will be open and transparent, addressing your queries without pressuring you to sign up immediately.

Be Wary of Scams:

Unfortunately, insurance scams do exist, and it's essential to be vigilant. Be cautious of unsolicited contacts or appointments, as these may be attempts to sell you inferior coverage at a higher cost. Fraudulent companies may also use confusingly similar names to legitimate insurers or offer extremely low rates that seem too good to be true. Always use the exact name of the insurance company when conducting your research to avoid being misled by imposters.

By following these steps and conducting thorough research, you can make an informed decision about the legitimacy and reputation of an insurance company.

Trust your instincts

If you're seeking an insurance quote, be aware that you may be bombarded by agents all trying to win your business. You can check if an agent is legitimate by looking them up on the National Association of Insurance Commissioners (NAIC) database. This database lists all active licensed insurance agents and their NAIC number. You can also ask the agent for their company ID and government ID and then call the company to verify.

If you're interested in a medical discount plan, do your own research and call the plan directly after confirming that your doctor is covered. While there are legitimate discount plans, others take people's money and offer very little in return.

If you're in the midst of an emergency, the last thing you want to find out is that you'll have to cover all of the bills because what you have isn't really health insurance.

Frequently asked questions