How To Find Out if an Online Insurance Provider is Reliable

It can't be denied that the advent of the internet changed our lives for the better. Whether you want to shop, pay your bills, socialize or find information about the things you’re interested in, the internet makes everything infinitely easier.

How To Find Out if an Online Insurance Provider is Reliable

Most people go online on a daily basis for all sorts of tasks and they feel comfortable and safe while navigating the internet. However, when it comes to purchasing insurance online, a lot of them are reluctant.

The idea of purchasing insurance from a company that operates entirely online and has no physical branches can be somewhat daunting. People find it hard to trust insurers without meeting and having a face to face conversation with them and for good reason. When working with online insurers you’ll have to provide sensitive personal information to a company you don’t know anything about.

Still, those who are on a tight schedule or can’t make a million trips to different providers will jump at the opportunity to buy insurance fast and easy, and working with an online insurance company or InsureTech can offer these benefits and more. Luckily there are a lot of reputable online insurers out there and chances are you’ll find one that will suit your needs. But how do you know that the online insurer you choose is actually reliable and you won’t run any risks by doing business with them? Research is key and knowing what to look for when searching for an online insurance provider can help you stay safe.

Online insurers vs traditional insurers

Before we share our top tips for finding a trustworthy online insurance company, let’s see what differentiates them from traditional insurers. InsureTechs represent an alternative to traditional insurance companies and come with a great deal of benefits to meet consumers’ growing demands. They are fully-digital players in the insurance market that offer great insurance solutions for all budgets. There are several aspects that set them apart from traditional companies that you should know about before going on a quest to find the best online insurance company:

  • They provide a limited range of options. Traditional insurance companies usually offer a broad variety of policies and coverage options for their customers. On the other hand, InsureTechs tend to specialize in certain services and focus on offering policies to clients with less complex insurance needs. It might be because online insurers are still relatively new in the industry and they need time to develop and evolve further. However, given the benefits they offer and their great potential, they’ll undoubtedly become much bigger in the future and expand their product range.
  • Tech-first insurers strive to simplify the shopping process and meet customers where they are. There’s a lot of paperwork involved in working with traditional insurance companies and a customer has to go through various steps to complete the process. Online insurers eliminate these obstacles and provide convenient and hassle-free procedures. This means less time and effort spent on finding the right policy. Customers are able to purchase online insurance in a comfortable and effective manner, without going through a time-consuming and stressful process.
  • Online insurers also cater to customers who are on a tight budget and can’t afford to buy expensive policies. Since they run all their activities online, they have fewer operational costs to cover and that gives them the possibility to provide cheaper insurance policies, making them a cost-effective option.

Ask for referrals

When searching for a trustworthy online insurer, referrals from family, friends or co-workers can point you in the right direction. Even though their circumstances might be different from yours, knowing that someone close to you has had a positive experience with a company can make you feel more confident in working with them. Make sure to ask them how the whole process went to help you get a clear picture of the company’s potential. Obviously, this should be only the start of your investigation as you’ll have to search for further information on the insurer from different sources.

Read reviews

The online provides precious information on every topic of interest. With a quick search on Google you can find out everything you want to know about an online insurer by reading reviews from people who have worked with them. It’s important to take your time and go through as many reviews as possible, both negative and positive. Also, use your analytical skills and try to distinguish between fake reviews and genuine ones. Besides reading customer reviews, you can take your research further and see if the company has been mentioned in the news. If the insurer has been portrayed in the media in a positive light, you can consider it a collective vote of confidence.

Check their accreditation

Trustworthy online insurers follow the standards and the regulations imposed by authoritative bodies in the field. That’s why you should always check if the online insurance provider you’re considering is accredited and runs its activity legally. It shouldn’t be difficult to find out if an insurance company is accredited or not as this is one of the first information they should provide to their customers. If you’re having a hard time finding information about accreditation or licensing, chances are you’ve come across a shady company and you should steer clear from them.

Inspect their website

A website can tell you a lot of things about the insurance company you’re researching. A trustworthy company will provide all the information customers require in a clear and straightforward manner, without hiding or omitting any details. Besides the general look of the site, other aspects you should pay attention to include contact details, accreditation and licensing information, customer reviews and the FAQ section. A professional website is an indicator of a company’s legitimacy and credibility.

Pay attention to red flags

Last but not least, you should keep an eye out for red flags. If you want to avoid falling victim to a scam, you better learn how to spot the warning signs:

  • Finding a lot of complaints or bad reviews about the company.
  • Companies that offer incredibly low insurance rates for high-coverage policies.
  • No address or contact details.
  • Unsecure websites (the ones that start with HTTP instead of HTTPS).
  • The feeling you are being pressured to accept their conditions and proceed to purchasing a policy you’re not comfortable with.
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Online Threat Alerts Security Tips

Pay the safest way

Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly.

Guard your personal information

In any transaction you conduct, make sure to check with your state or local consumer protection agency and the Better Business Bureau (BBB) to see if the seller, charity, company, or organization is credible. Be especially wary if the entity is unfamiliar to you. Always call the number found on a website’s contact information to make sure the number legitimately belongs to the entity you are dealing with.

Be careful of the information you share

Never give out your codes, passwords or personal information, unless you are sure of who you're dealing with

Know who you’re dealing with

Crooks pretending to be from companies you do business with may call or send an email, claiming they need to verify your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something and know who you are sending payment to. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.

Check your accounts

Regularly check your account transactions and report any suspicious or unauthorised transactions.

Don’t believe promises of easy money

If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true.

Do not open email from people you don’t know

If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. Do not click on any links in an email unless you are sure it is safe.

Think before you click

If an email or text message looks suspicious, don’t open any attachments or click on the links.

Verify urgent requests or unsolicited emails, messages or phone calls before you respond

If you receive a message or a phone call asking for immediate action and don't know the sender, it could be a phishing message.

Be careful with links and new website addresses

Malicious website addresses may appear almost identical to legitimate sites. Scammers often use a slight variation in spelling or logo to lure you. Malicious links can also come from friends whose email has unknowingly been compromised, so be careful.

Secure your personal information

Before providing any personal information, such as your date of birth, Social Security number, account numbers, and passwords, be sure the website is secure.

Stay informed on the latest cyber threats

Keep yourself up to date on current scams by visiting this website daily.

Use Strong Passwords

Strong passwords are critical to online security.

Keep your software up to date and maintain preventative software programs

Keep all of your software applications up to date on your computers and mobile devices. Install software that provides antivirus, firewall, and email filter services.

Update the operating systems on your electronic devices

Make sure your operating systems (OSs) and applications are up to date on all of your electronic devices. Older and unpatched versions of OSs and software are the target of many hacks. Read the CISA security tip on Understanding Patches and Software Updates for more information.

What if You Got Scammed?

Stop Contact With The Scammer

Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.

Secure Your Finances

  • Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
  • Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report. Doing so prevents lenders and others from accessing your credit report entirely, which will prevent them from extending credit:

Check Your Computer

If your computer was accessed or otherwise affected by a scam, check to make sure that your anti-virus is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company. Consider utilizing the Better Business Bureau’s website to find a reputable company.

Change Your Account Passwords

Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure to choose strong passwords when changing account passwords.

Report The Scam

Reporting helps protect others. While agencies can’t always track down perpetrators of crimes against scammers, they can utilize the information gathered to record patterns of abuse which may lead to action being taken against a company or industry.

Report your issue to the following agencies based on the nature of the scam:

  • Local Law Enforcement: Consumers are encouraged to report scams to their local police department or sheriff’s office, especially if you lost money or property or had your identity compromised.
  • Federal Trade Commission: Contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or use the Online Complaint Assistant to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
  • Identitytheft.gov: If someone is using your personal information, like your Social Security, credit card, or bank account number, to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.

How To Recognize a Phishing Scam

Scammers use email or text messages to try to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful.

Scammers often update their tactics to keep up with the latest news or trends, but here are some common tactics used in phishing emails or text messages:

Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might

  • say they’ve noticed some suspicious activity or log-in attempts — they haven’t
  • claim there’s a problem with your account or your payment information — there isn’t
  • say you need to confirm some personal or financial information — you don’t
  • include an invoice you don’t recognize — it’s fake
  • want you to click on a link to make a payment — but the link has malware
  • say you’re eligible to register for a government refund — it’s a scam
  • offer a coupon for free stuff — it’s not real

About Online Threat Alerts (OTA)

Online Threat Alerts or OTA is an anti-cybercrime community that started in 2012. OTA alerts the public to cyber crimes and other web threats.

By alerting the public, we have prevented a lot of online users from getting scammed or becoming victims of cybercrimes.

With the ever-increasing number of people going online, it important to have a community like OTA that continuously alerts or protects those same people from cyber-criminals, scammers and hackers, who are every day finding new ways of carrying out their malicious activities.

Online users can help by reporting suspicious or malicious messages or websites to OTA. And, if they want to determine if a message or website is a threat or scam, they can use OTA's search engine to search for the website or parts of the message for information.

Help maintain Online Threat Alerts (OTA).

How To Find Out if an Online Insurance Provider is Reliable