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Avoiding auto insurance scams

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Three local insurance agencies will be paying thousands of dollars in fines after customers complained about hidden fees in their auto policies.

FOX 47's Cryss Walker spoke with an insurance expert to find out what you need to know so you don't get swindled and scammed.

“Insurance can be complicated and that's why we do have our call center and that's why we do have staff on call that can help answer questions”, said Andrea Miller from the Michigan Department of Insurance and Financial Services.

Questions, concerns or small feelings that make you think something isn't right.

If you get that nudge while shopping for car insurance MDIF would be the office to call.

That's the office that issued a stipulation complaint against a string of local insurance agencies after they were accused of misleading their customers into buying National Safe Drivers memberships.

NSD is a roadside assistance and towing company.

Consumer complaints have been filed against three Lansing L.A. Insurance locations, accusing the agencies of selling customers NSD memberships while telling them that the service was mandatory in order to purchase their auto insurance policy.

Experts say it's important to do your research and don't be so quick to leave your signature.

“Make sure you read what you sign, understand what you’re signing and if you have questions, again, call our office”, said Miller.

When shopping for car insurance decide what you want in your policy and select a plan that fits your needs.

Read your policy thoroughly and know what is covered and what is not.

“Being pressured into signing documents, without having the time to really, fully read the documents and understand it, it’s another read flag that consumers should pay attention to”, Miller explained.

The accused L.A. Insurance agencies did not admit, or deny the allegations but did say they will fully resolve the matter by paying the fines and penalties.