Insurance fraud is a big deal, the costs of fraudulent claims are enormous, the ABI recently suggested that insurance companies deal with ?5m of fraudulent claims every week just in regards to vehicle insurance. There are many stories of people being defrauded of thousands of pounds, buying policies that don't cover what they believe that it should, or worse - finding themselves owing massive sums of money after a disaster that their policy should have covered but in fact did not.



So how do you make sure that you avoid falling for an insurance scam? A lot of the protection is in your own head, you have to make sure that you are suspicious and knowledgeable about what you want and what it is that you are buying. Fraud is very damaging to insurance companies, no one is going to take it unkindly if you are a hard sell, in fact, many companies will probably appreciate that approach.

So when it comes to buying a policy make sure you don't pay for anything until after all the insurance documents are filled out and that you fully understand exactly what coverage is included, and what the cost for the coverage is. Don't let your agent get away without explaining every single little detail to you and if you're unclear keep asking until you have got it straight.

If the agent or the company rep is unhelpful or evasive when it comes to answering your questions then you should be immediately suspicious. These people are paid to have all the information that you might require, if they get difficult with you remember that it's your money and your policy. If anyone ever tries to sell you coverage in a short period and is unwilling to give you space to consider or to talk to other people then you should stop everything immediately.

Absolutely never sign a blank insurance form or any blank papers, and likewise never give the agent or agency power of attorney to sign an insurance application or buy coverage for you. Whilst this could make things more awkward for you and take more time, it's incredibly important that you are the only one who signs anything and that you have all the information in front of you at the time that you do sign.

Insurance is an important item and a good policy can be expensive. When it comes to purchasing insurance make sure that you are getting what you pay for, do your research and keep your wits about you.