Car Insurance Scams and How to Avoid Them

CAR INSURANCE SCAMS AND HOW TO AVOID THEM

Car insurance scams cost insurance companies billions of dollars eachrnyear. But in the end, everyone has to pay. As a result ofrnscams and staged accidents, auto insurance premiums increase for usrnall, and innocent people are sometimes tragically injured.

There are well-known tactics that criminals use in their attempts torndefraud auto insurance companies. Being aware of these criminalrnschemes may allow you to protect yourself and your family, and can alsornhelp keep car insurance premiums down.

Swoop & Squat

In this particular scam, the perpetrator’s car (i.e. the criminal) willrnsuddenly swoop in next to the victim’s car, forcing the victim tornchange lanes. Unbeknownst to the victim, the car that he/she nowrnfollows is also involved in the scam. This second criminal carrnwill abruptly slam on the brakes, forcing the victim to plow into therncar’s rear end. This “squat” car will often be packed withrnpassengers, who will all file fraudulent medical claims. Thernmedical injuries that are supposed to have been suffered are hard torndetect, like neck injuries and soft tissue damage. Also, therndoctor who evaluates these fake victims may be included in the scam asrnwell.

The Wave

On a congested street, the criminal car will “wave” the victim car in,rneffectively giving them the right-of-way. But when the victimrntries to merge into the lane or make a turn, the scammy car will speedrnup, initiating a collision. When the police arrive, the criminalrndriver will deny any knowledge of the wave and declare the victim to bernat-fault.

T-Bone

This normally takes place on a desolate street. The criminal carrnwill wait an intersection for a potential victim to drive up.rnOnce the criminal sees a car, they speed up and collide into thernvictim’s car as it passes through the intersection. Bogusrnwitnesses are on the scene so that when the police arrive, they claimrnthat the victim ran a red light or a stop sign.

Paper Accident

Criminals, along with shady participants in an auto body shop, willrnsubmit a fake claim for a phantom accident. They will keep thernclaim under a $1000, since car insurance companies will rarelyrninvestigate claim for that amount.

Side Swipe

In a double turn lane, a criminal car will wait until the victim’s carrndrifts into the far lane. At the moment they will hit the gas,rnand side swipe the victim’s car.

Fake Helpers

This is the name given to scammers who show up at the accident scenernwith all sorts of helpful information. They appear like angelsrnready to offer assistance during the victim’s time of need, completernwith numbers and contact info for auto repair shops. However,rnthis is the kind of help that you most definitely do notrnwant. These “runners” or “cappers” (as they are sometimesrnreferred to) will be working with body shops that inflate prices inrnorder to rip-off insurance companies.

How To Avoid These Scams

Now that you know what to look out for, here are some tactics of yourrnown that you can employ to protect yourself and save money on your carrninsurance:

• Leave plenty of distance between your car and the car in front ofrnyou. This is a defensive driving technique that gives you spacernto stop in case they suddenly slam on the brakes, and can save you if arnscammer is trying to force you into an accident.
  
  

• Never blindly follow a “wave” when merging, changing lanes or making arnturn.
  
  
• Take pictures at the scene of an accident (keep a disposable camera inrnyour glove compartment). It is much harder for a criminal torncommit fraud when there is visual evidence present.



• Only use auto body shops and doctors that you trust. Ifrncontemplating using a new shop or doctor for the first time, seek outrnrecommendations and reviews.
  
  
• If you suspect you are the victim of a scam, get in touch with thernNational Insurance Crime Bureau (NICB). They can be reached atrn1-800-835-6422 or at their website: www.nicb.org.