DEAN GRAZIOSI INSURANCE SCAM

Dean Graziosi Tells You How to Spot an Insurance ScamInsurance Scam Strategies by Dean Graziosi

About Dean Graziosi

Dean Graziosi, a respected writer and instructor in real estate investing, spends all of his time in teaching others how to replicate his strategies and techniques to make their fortune in real estate investment.  He did it first, and now he's sharing the knowledge that will allow others to do the same.  Dean Graziosi is very concerned about insurance scams out there.  Not only those concerning real estate, but also other insurance scams that can take money that you could be using to better your life.

From Dean Graziosi:

I'm really glad you found this site about insurance scams.  It's usually far easier to find websites that ARE insurance scams, and I put up this site to fight their influence and damage to the consumer.  How do you know I'm a credible resource?  I made millions in real estate investing, then found great satisfaction in writing books and teaching others about doing the same thing in their lives.  I don't sell insurance, and want only to help you to recognize and avoid insurance scams.

Any consumer, not just a real estate investor, can be the target of an insurance scam.  From credit life insurance to home insurance and other life insurance policies, there are scams everywhere.  If I can help those who come to this site to avoid one of these insurance scams, I'll feel like the time and effort has been well worth it.  Read on to learn how to recognize and avoid insurance scams.

Insurance Scams

Here Are Some Ways People Become Insurance Scam Victims

Scam 1: Hit & Run Companies Without Staying Power

One would think that all of the licensing and regulations regarding insurance would make it impossible for a person to set up a company, sell insurance to consumers, then run with the money.  But, it's happening, and it could happen to you.  Know the facts about an insurance company, including how long they've been around.

Scam 2:Too Good To Be True Coverage

When a company tries to sell you insurance with far better coverage than anything else out there, and at a lower price, beware.  Insurance coverage costs can vary, but large differences in cost should alert you to the fact that something isn't included when you think it is.

Scam 3: Insurance You Don't Need or Can Get Cheaper Elsewhere

Credit life insurance is an excellent example of a possible insurance scam.  This is insurance to pay off a loan if you die.  First, if a loan or contract requires credit life insurance, get the requirement removed, or you may want to look elsewhere.  For the vast majority of people, a huge life insurance policy with far more monetary payout can be purchased for less than a credit life policy.

Scam 4: High Cost “Temporary” Coverage

This type of insurance usually kicks in when another policy is canceled or there's a break in coverage.  It isn't always a scam, but even when it's not, it's hugely expensive and unnecessary.  Even reputable insurance companies can get you into this trap.  Some minor infraction or a missed payment on your policy causes this “temporary” coverage to kick in at extremely high cost.

Scam 5: Insurance from “Related Companies”

There are laws against this in real estate settlement, but it happens anyway.  And, it could happen with an auto purchase or other high ticket item requiring insurance coverage for the lender.  You are charged far more than you could get the coverage for simply because it's convenient or “in the fine print.”  The insurance company is owned or operated by the person or company you're buying or closing with.

Scam 6: Online Insurance Locator Sites

There are a number of really reputable websites that make a small commission from reputable insurers by getting you to come to the site and fill out a form to request a quote.  But, if they want any up-front payment from you, beware.  You should be able to get to the company and actually buy a policy before you pay out money.

How to Avoid Insurance Scams

Identifying and Avoiding Insurance Scams

These tips will help you avoid being an insurance scam victim.

• Know the Insurer's Rating

Not all types of insurance or all companies are rated by independent third parties, but many are.  Particularly life insurance and car insurance companies are rated by companies like A.M. Best for financial stability and staying power.

• The Payment in the Home Insurance Scam

Though there are legitimate companies that still sell insurance in the home, and they could ask for some payment at that time, be very careful about giving your money to a sales person in the home.  If it's a national company with a history of being trustworthy, it's still not impolite to ask to call in and verify the coverage and payment requirements before giving the sales person any money.

• Sound Too Good To Be True?

If you've been shopping around for any type of insurance, auto, home, life or health, and suddenly you find a policy offered with the same or better coverage for less money...investigate.  Scams take many forms, and this one could very likely be a “fine print” scam. Though it may end up being legal because you signed the contract, there can be so many exclusions hidden in the fine print that the coverage is almost useless.  If you haven't received the entire policy, get it and read every word.  What you don't see easily is usually what hurts the most.

• You May Not Need It – Credit Life Insurance is Expensive

Years ago, the credit life scams were everywhere.  Loan and mortgage companies would receive kickbacks from very high cost credit life insurers for requiring their policy to get the loan.  Though some of this activity is illegal, watch for any insurance requirement to get a loan.  It's far cheaper to buy a $100,000 life insurance policy than what some people pay for a $2000 credit life policy.

• Related Companies & High Cost Insurance Scams

New laws have made this more difficult in real estate settlements, but it still happens.  It also happens in auto purchases and other situations.  You're buying or getting a loan from a company offering “one-stop convenience.”  You get the item, the loan, and get it insured all in one place.  It may be convenient, but it us usually VERY expensive.  Never sign a deal like this unless you've shopped the insurance and have the option of getting it elsewhere.

• Online Insurance Locator Sites

While many of these sites are reputable and make their money through small commissions from the insurer they send you to, be careful.  You should be given more than one choice, with a detailed comparison of coverage and cost.  You shouldn't have to pay any money directly to the site, either for the insurance or for a quote or application.

Dean Graziosi wants to help you to avoid insurance scams with the information on this site.  The more you can save by avoiding these insurance scams, the more money you'll have available to make your fortune in real estate investing.