You depend on insurance to be there when you need it most. You may require expensive medical care, incur unexpected home repair costs following a storm or require disability coverage after an injury.
Unfortunately, insurance fraud is a growing issue in Texas that increases the cost of insurance and potentially jeopardizes the availability of coverage for a victimized consumer.
Below are two examples of insurance scams that have impacted Texans.
Medical discount cards
A medical discount card is in a program in which a consumer, in exchange for a fee, receives a card that offers discounts at participating medical or dental providers. For some people, medical discount cards can be a great value.
Despite this, some unscrupulous companies will market medical discounts cards as low-cost health insurance, when in fact the consumer is responsible for all costs after the medical discount is applied. And often, the medical discounts turn out to offer little to no savings to a consumer.
Unauthorized insurance agents or policies
Another scam that has impacted Texans in recent years involves companies or individuals representing themselves as insurers or insurance agents and selling fraudulent policies to consumers.
The consumer will pay money to the purported agent, believing they have purchased insurance. If the consumer later files a claim, they find out that they have no coverage and were the victim of a scam.
Avoiding insurance scams
Experts recommend being cautious whenever purchasing insurance.
If an offer seems unusually cheap or too good to be true, it may be a scam. You can also visit the Texas Department of Insurance website to verify that an insurer or agent is licensed to operate in Texas. You should not do business with an unlicensed company or agent.
Finally, if you have issues with an insurer or potential insurance scams, you should speak with an experienced attorney, who can advise you of your rights and any avenues of relief.