Auto insurance fraud is dramatically on the increase. Non-profit
sites like the Coalition Against Insurance Fraud report that auto
insurance fraud costs in the region of $12.3 billion or more each
year. What”s more it is a very lucrative business for the
criminals.
But how is this type of fraud generally perpetrated and how can
you tell if it has happened to you?
Auto insurance fraud often comes in several guises the more
common ones being these:
STAGED ACCIDENTS
An accident is staged in which the drivers of two or more
vehicles intentionally collide with you. Normally a driver will
pull up in front of you by temporarily slamming on their brakes
and their accomplice will run into the back of you.
They then make it look like it was your fault.
FAKE HELPERS
Scam Helpers will wave an innocent driver into traffic, but then
an accomplice will deliberately crash into the driver. Again the
innocent driver appears to be at fault.
AUTO REPAIR SHOPS
Auto insurance fraud is increasingly being committed by auto
repair shops. They scam insurance companies in several ways.
They may bill for work not actually performed on the car, they
may over quote on the work, charging more for it than they
should, claim for property stolen from your vehicle that actually
did not exist in the first place or deliberately cause further
damage to your car for which they bill the insurance company.
OTHER SCAMS
Several other auto insurance scams have recently been reported
including:
* Falsely reporting a car as stolen
* Fake hit-and-run claims
* Destroying a vehicle by setting it on fire
Being aware of these scams and frauds can help you to avoid them
and ensure you are not considered to be part of the fraud by the
insurance company if they suspect a fraud has taken place.
Trying to prove your innocence in some cases may be hard to do.
Now you are aware of some of the more common auto insurance
frauds you know what to look out for and can potentially avoid
them.
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