Top Insurance Scams to Watch Out for and How to Stay Safe
By Rozmek Team
•
September 25, 2025
Scammers are always inventing new ways to trick people out of their money, and the world of insurance is a prime target for their schemes. By learning to recognize the most common scams and their red flags, you can protect yourself from becoming a victim.
Here are some of the top insurance scams to watch out for and how to stay safe.
Common Scams and How to Spot Them ????️♂️
1. The "Storm Chaser" Roofer Scam
The Scam: After a big hailstorm or windstorm rolls through your town, a contractor knocks on your door. They offer a "free" roof inspection, and—surprise!—they find "significant damage." They'll pressure you to sign a contract right then and there, often asking for a large upfront payment and promising to handle the insurance claim for you. In the worst cases, they take your money and disappear. In others, they do shoddy work with cheap materials.
The Red Flags: High-pressure sales tactics, demands for a large cash deposit, out-of-state license plates on their truck, and an offer to waive your deductible (which is illegal in many states).
How to Stay Safe: NEVER sign a contract with an unsolicited, door-to-door contractor. If you think you have damage, call your insurance company FIRST. Let their official adjuster inspect your roof. Then, get multiple quotes from reputable, local, and licensed roofing companies.
2. The Staged Auto Accident
The Scam: A fraudster intentionally causes a minor car accident with you so they can file a fake injury claim against your insurance. A common tactic is the "swoop and squat," where one car suddenly cuts you off while another car in front of them slams on the brakes, giving you no chance to avoid a rear-end collision.
The Red Flags: The other driver seems overly eager to claim injuries despite a very minor impact, multiple passengers in their car all claim to be hurt, or they try to pressure you into not calling the police.
How to Stay Safe: ALWAYS call the police to the scene of any accident, no matter how small, to get an official report. Use your phone to take extensive photos of both cars and the surrounding scene. Get contact information for any independent witnesses.
3. Fake Health Insurance Plans
The Scam: Scammers use aggressive telemarketing and professional-looking websites to sell "health plans" with unbelievably low premiums. What they're actually selling are medical discount cards or limited-benefit plans that are not real health insurance and will leave you on the hook for almost all of your medical bills.
The Red Flags: An offer that sounds too good to be true, high-pressure tactics to enroll immediately over the phone, and vague answers about which doctors or hospitals are "in-network."
How to Stay Safe: The only places to buy legitimate, ACA-compliant health insurance are the official government marketplace (HealthCare.gov) or directly from the websites of major, well-known insurance companies (like Blue Cross Blue Shield, UnitedHealthcare, Aetna, etc.). Be extremely wary of unsolicited calls offering health coverage.
4. The Phishing Email or Text from "Your Insurer"
The Scam: You get an urgent-sounding email, text, or robocall claiming to be from your insurance company. It might say your policy has lapsed or there's a problem with your last payment. It will direct you to click a link and enter your personal and financial information to "fix" the problem. The link, of course, goes to a fake website designed to steal your data.
The Red Flags: A sense of panic or urgency, threats to cancel your policy immediately, and links that don't go to the insurer's official web address.
How to Stay Safe: NEVER click on links in unsolicited messages. If you're concerned there might be an issue with your policy, log in to your account directly through your insurer's official app or by typing their website address into your browser. Better yet, call the customer service number on the back of your insurance card.
Your best defense against any scam is simple: When in doubt, stop, hang up the phone or walk away, and contact your insurance company directly.
Here are some of the top insurance scams to watch out for and how to stay safe.
Common Scams and How to Spot Them ????️♂️
1. The "Storm Chaser" Roofer Scam
The Scam: After a big hailstorm or windstorm rolls through your town, a contractor knocks on your door. They offer a "free" roof inspection, and—surprise!—they find "significant damage." They'll pressure you to sign a contract right then and there, often asking for a large upfront payment and promising to handle the insurance claim for you. In the worst cases, they take your money and disappear. In others, they do shoddy work with cheap materials.
The Red Flags: High-pressure sales tactics, demands for a large cash deposit, out-of-state license plates on their truck, and an offer to waive your deductible (which is illegal in many states).
How to Stay Safe: NEVER sign a contract with an unsolicited, door-to-door contractor. If you think you have damage, call your insurance company FIRST. Let their official adjuster inspect your roof. Then, get multiple quotes from reputable, local, and licensed roofing companies.
2. The Staged Auto Accident
The Scam: A fraudster intentionally causes a minor car accident with you so they can file a fake injury claim against your insurance. A common tactic is the "swoop and squat," where one car suddenly cuts you off while another car in front of them slams on the brakes, giving you no chance to avoid a rear-end collision.
The Red Flags: The other driver seems overly eager to claim injuries despite a very minor impact, multiple passengers in their car all claim to be hurt, or they try to pressure you into not calling the police.
How to Stay Safe: ALWAYS call the police to the scene of any accident, no matter how small, to get an official report. Use your phone to take extensive photos of both cars and the surrounding scene. Get contact information for any independent witnesses.
3. Fake Health Insurance Plans
The Scam: Scammers use aggressive telemarketing and professional-looking websites to sell "health plans" with unbelievably low premiums. What they're actually selling are medical discount cards or limited-benefit plans that are not real health insurance and will leave you on the hook for almost all of your medical bills.
The Red Flags: An offer that sounds too good to be true, high-pressure tactics to enroll immediately over the phone, and vague answers about which doctors or hospitals are "in-network."
How to Stay Safe: The only places to buy legitimate, ACA-compliant health insurance are the official government marketplace (HealthCare.gov) or directly from the websites of major, well-known insurance companies (like Blue Cross Blue Shield, UnitedHealthcare, Aetna, etc.). Be extremely wary of unsolicited calls offering health coverage.
4. The Phishing Email or Text from "Your Insurer"
The Scam: You get an urgent-sounding email, text, or robocall claiming to be from your insurance company. It might say your policy has lapsed or there's a problem with your last payment. It will direct you to click a link and enter your personal and financial information to "fix" the problem. The link, of course, goes to a fake website designed to steal your data.
The Red Flags: A sense of panic or urgency, threats to cancel your policy immediately, and links that don't go to the insurer's official web address.
How to Stay Safe: NEVER click on links in unsolicited messages. If you're concerned there might be an issue with your policy, log in to your account directly through your insurer's official app or by typing their website address into your browser. Better yet, call the customer service number on the back of your insurance card.
Your best defense against any scam is simple: When in doubt, stop, hang up the phone or walk away, and contact your insurance company directly.