How to Protect from Auto Insurance Fraud

You might be the perfect law abiding citizen, but there are many out there with their unscrupulous ways to cheat you and cause damages. You can be very careful on the road and you might be a very good driver, but even without your participation, auto insurance frauds happen on the road. Discussed below are some common auto insurance frauds and tips on how to protect from auto insurance fraud.

Buying Insurance

There is an aspect of auto insurance fraud that happens even before you hit the road. It is during the insurance buying process.

  • Please research well before going with a company.
  • Check with your state insurance department, verify the company’s ratings and get customer reviews of narrowed down choices.
  • Ensure the company has not invested in or purchased any auto repair shops.
  • Read your policy; understand the coverage and benefits; and make sure there are no hidden charges.
  • Keep your insurance card and number safe.

Staged Accidents

The most common of auto insurance frauds are the staged accidents, where you will be forced into hitting another vehicle. Mostly, on busy service roads or side streets, the fraudster will hit the breaks suddenly on purpose with no reason, just to make you rear-end his/her car. As rear ending is ruled against the person in the back car, the person in the front car can collect money from your insurance.

Additional Damage

When an accident occurs, the fraudster will collect your insurance details, drive off to another place and cause more intentional damage to his/her car. This way, he/she gets to collect more money claiming you caused all those damages. This fraud mainly happens if you fail to call the police, but try to settle the issue by providing the insurance details directly to the person whose car you hit.

The Wave

On a busy business street, the fraudster, going in front of you would wave at you allowing you to overtake and move in front. While you are attempting to do so, he or she will speed up and cause a collision. When the police arrive, the fraudster will completely deny that he or she waved you in, making it your fault.

Multi-Tired Scam

A team of doctors, lawyers and mechanics would work together to charge a victim more than the original costs. A driver would recommend their services and get a cut of the profit.

How to Protect from Auto Insurance Fraud

  • Always be aware of your surroundings while driving.
  • Make sure you have enough space before entering traffic.
  • Please be careful about trusting people who “wave” you in.
  • Always remember to call the police if you are in an accident or any road incident.
  • Remember to capture the accident and other details in pictures and/or video.

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