Auto Insurance Scams

Protecting Yourself Against Auto Insurance Fraud

If you become a victim of automobile insurance fraud, you pay. Not only will you pay higher premiums because you may acquire a costly claim, but, as with any auto accident, you and your family could pay with your lives.

Insurance fraud began when insurance first began. Incidents have been recorded as far back as ancient Greece. Ship scuttling was an insurance scam in ancient Greece where ships were purposely sunk. Later insurance fraud traveled to England then to America. When automobiles were introduced it opened a whole new arena for fraudulent insurance claims. Today, with modern technology, many claims do arise from sophisticated organized crime rings. You can be aware of to protect yourself from being a scammer’s next victim.  First, it is important to know what types of scams are used. Automobile insurance scams can range from vehicles deliberately stopping in front of a driver to cause a rear-end accident to drivers who pretend they are being helpful but intend to cause an accident that will look like the innocent drivers fault.

Example of Auto Insurance Scams

Staged Rear-End Accidents

A scam driver will quickly get in front of an innocent car and then slam on their brakes. This causes the innocent driver to rear-end the scam driver.

Adding Damage

After an accident, either staged or not, the scam driver will go to another location and cause extensive damage to their vehicle and claim that the damage happened during the original accident.

Fake Helpers

Scam Helpers will wave an innocent driver into traffic, but then crash into the innocent driver. When it comes time to file the claim, the scam driver will deny waving anyone in.

Since these scams can happen at any time and place, it is important to be prepared. If an accident does happen, take notes on everything about the other car, the accident, and everybody that was in the other car. Keep a disposable camera in your car to record damage to both vehicles. And talk to your insurance company, let them know if you felt something was suspicious