Department of Insurance Warns Consumers about Phone Scam Concerning Auto Insurance

Callers are asking Ohioans to provide personal and financial information over the phone

Ohio Department of Insurance Director Mary Jo Hudson is warning Ohioans about a telephone scam that has been identified.

"In these tough economic times, phone scams become more and more frequent," said Director Hudson. "It's important that Ohioans take precautions when it comes to securing their personal and financial information so as not to become a victim of these scams."

The scam begins when the caller tells the consumer that there has been a problem processing their insurance payment. The caller then informs the consumer that they will need to obtain some personal information (i.e. a social security number, date of birth, etc.) from them, as well as their bank account information, so they can attempt to rectify the situation. They further inform the consumer that their policy will lapse if they do not provide their bank account information.

Director Hudson is providing the following tips so consumers do not fall victim to this phone scam:

Be cautious about anyone other than your insurance agent contacting you about your insurance policy.
Beware of imposters. Crooks pretend to be from companies you do business with and may call you claiming they need to verify your personal information. Be especially suspicious if someone contacts you and asks you to provide information they should already have. Before responding, get the caller's name and telephone number and then contact your insurance carrier directly to confirm if the call was legitimate. If the caller will not provide a phone number, try to get it by using the caller ID function on your telephone.
Keep your social security number confidential. It's the key that unlocks your identity. Don't give it to anyone unless you're sure who it is and why it's necessary to provide it.
Don't provide financial information over the telephone, especially to someone you don't know. Do not provide any credit card of bank account information until you have an opportunity to contact your insurance agent directly about the matter.

The Department is asking anyone who has received this type of phone call to contact the Department's Fraud hotline, 1-800-686-1527.

Insurance Department Offers Severe Spring Weather Insurance Tips
New on-line toolkit will provide insurance tips, information

COLUMBUS —In conjunction with Ohio Spring Severe Weather Awareness week (March 23-29), Ohio Department of Insurance Director Mary Jo Hudson has provided important insurance tips and is reminding Ohioans to include a review of their insurance policies as part of their storm season preparation. Ohioans are also encouraged to visit the Department’s new Severe Weather On-line Toolkit at www.ohioinsurance.gov.

“Spring weather in Ohio is unpredictable with flooding, hail, lightning, and tornadoes all having the potential to cause major property damage and possible financial loss,” Director Hudson said. “Ohioans should take the time now to work with their insurance agent to ensure they have adequate coverage to protect against the state’s volatile weather.”

Advance Insurance Planning Tips:

• Examine your homeowners/rental coverage as well as auto policies to determine if you need to revise your policy to reflect any improvements or changes that will affect your coverage needs.

• Be sure you have adequate coverage and deductibles that are reasonable for your needs.

• Rain, hail, lightning and tornado damage are generally covered in a standard homeowners and comprehensive portion of an auto policy.

• Since flood insurance is not included in routine homeowner and renter’s insurance policies, now is the time to check on the necessity and availability of flood insurance in your area. Call the National Flood Insurance Program (NFIP) at 1-800-638-6620 to learn more.

• Ask your insurance agent about whether a policy rider for flooding from sewer backups or sump pump issues is appropriate to add to your policy.

• Compile a detailed written inventory of your home and belongings and supplement that inventory with a videotape or photographs. Keep the inventory off-premises in a safety deposit box, or other secure location.

If You Have Suffered Damage to Your Property Due to a Storm:

• Call your insurance company as soon as you can. Be sure your agent knows how to contact you.

• Take reasonable steps to prevent additional damage if permitted by public safety authorities and if you will not endanger yourself.

• Closely inspect property and cars for damage. Note and photograph any damage.

• If required to seek temporary housing, check your policy for “loss of use“ coverage.

• Be sure everything is considered in your claim. Back up claims with written estimates.

The Department’s new Severe Weather On-line Toolkit, available at www.ohioinsurance.gov, provides guidance on what steps to take when filing an insurance claim in the event that property is damaged in a storm. The toolkit also has important information on obtaining flood insurance as well as web links to the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Plan (NFIP).