Taking the following proactive steps can help you avoid becoming a victim of auto insurance fraud:

• Plan Ahead. Purchasing insurance itself is not enough. Decide what type of coverage you want and what you can afford in terms of deductibles.
• Shop Around. Average auto insurance rates have declined in recent years. Comparison shop as you would for any other major purchase. The cost of insurance can vary significantly from com-pany to company.
• Get What You Pay For. Make sure your policy contains the coverage you've selected. Take the time to review your coverage and get a second opinion from a reliable source.
• Investigate. Check out the reputation of the agent as well as the insurance company. If you buy a policy from an unlicensed agent, you are not protected. Don't rely on someone's identification for verification. Get their agent license number and call your state insurance commissioner's office to verify an agent's licensing status. To locate your state insurance department, visit the NAIC web site at www.naic.org/consumer/state/usamap.htm Do not give out any financial or personal information until you do so.
• Never Pay Cash. Always pay your insurance premiums by check or money order. And, if possible, make your check out to the insurance company.
• Protect Your Records. Store copies of insurance documents and receipts in a safe deposit box or with an attorney. Documents should include up-to-date pictures of your vehicles.
• Detail Your Claims. In the event of an accident, your insurance company will meet with you to determine the validity of your claim. Keep a log of your interactions with adjusters and agents, including conversations, documents and phone calls, etc.
• Beware of Unsolicited Offers. Be wary if, after an auto accident, one or more strangers contact you to offer "quick cash" or to recommend a particular medical clinic, doctor or attorney. This unsolicited help could be the work of a fraud ring.
• Check All Related Bills. Ask for detailed bills for all services associated with your auto insurance policy. Carefully check them for accuracy. Be sure you actually received the service(s) listed and watch for double-billing or unexplained excess charges.