Are Instant Auto Insurance Policies a Scam?

Almost any online search for car insurance will inevitably retrieve a site or two touting instant auto insurance. You should be immediately wary of such sites. Reputable sites will not profess to offer instant car insurance coverage because they know the underwriting process takes a certain amount of time. Sites that make these promises are either overstating their abilities or trying to lure you into a scam. Read on to learn how to spot one of these scams.

Instant Quotes vs. Instant Coverage

It’s important to distinguish between instant auto insurance quotes and instant auto insurance coverage. Instant quotes are entirely possible and typically legitimate, whereas instant coverage is neither. Many sites provide visitors an instant auto insurance quote on policies to invite their business and inform their coverage decisions. In most cases, these sites are reputable and disseminate accurate coverage information. On the other hand, sites that claim to offer instant car insurance policies are usually not being straightforward with you.

Why Instant Coverage Is Impossible

Instant car insurance quotes are only preliminary estimates of what you will pay for a policy; they are not exact, nor are they guarantees of a certain premium. To find the exact amount you will pay for a car insurance policy, insurers must go through an intensive underwriting process that involves several time-consuming steps. These steps are, by nature, fairly involved and thus very difficult to speed up, particularly to “instant car insurance quote” levels. The underwriting process typically requires research into the applicant’s credit rating, coverage history, driving record, and VIN (vehicle identification number). No insurer can perform all of these steps instantly to issue a policy.

Beware of Scams

Sites that offer instant auto insurance quotes can typically be trusted and do not require a great deal of personal information to view estimates. However, sites that promise instant auto insurance coverage may ask for a great deal of sensitive information, presumably to put together your “instant” policy. This should serve as a red flag that something might be amiss with the integrity of the site. At the very least, the site is being disingenuous by claiming to offer instant car insurance. In the worst-case scenario, the promise of instant auto coverage could actually be a ruse for an identity-theft or credit-card-fraud scam. If you come across sites claiming to provide instant policies, you’re better off holding on to your personal information and looking for another site that promises only instant auto insurance quotes.