Avoiding Car Insurance Scams

By Steve Johnson in Auto Insurance on April 24th, 2008

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by Steve Johnson

Getting into a car accident is never good, but finding out that you have fallen to a car insurance scam can make matters much worse. You will find that your insurance rates will go up and your policy may even be canceled. You will also get points on your license. This will make any new car insurance quotes that you get extremely high, simply because you were scammed. This is something that happens all of the time, so you need to know how people scam insurance companies in order to avoid it.

There are many scam artists out there that will stage a rear end accident. They will find a person that they want to scam and swerve in front of them leaving them no room to maneuver. This causes a rear end collision. Nearly all rear end collisions are found to be the fault of the second car, so the scammed person will have to take the fall.

The people who perpetuate these scams will also try for a medical claim scam as well. The person may be able to talk a doctor into the fact that they have gotten hurt, or they may have an accomplice that is paid to falsify medical documentations. In either case, your insurance is the one that will pay the bills. In litigious states, such as California, this can be a particularly troublesome scam.

Another popular scam originates in a real accident. The way the scam works is the person who has damage to their car creates more damage before a repair estimate can be made. There is no way for anyone to prove that this extra damage did not come from the accident itself.

The third most common car insurance scam is known as the helpful scam. This is when a person tells you that the path is clear, such as when you are changing lanes, but the truth is that it is not. Later, when the accident is investigated, the person who told you it was clear claims that they never said such a thing.

Another version of this scam is seen after the accident itself. People can refer you to various lawyers, doctors, or car repair shops, in order to make a nice sum of money. These businesses then raise their prices in order to make quite a bit off of your insurance policy.

So, how can you protect your self against car insurance scams? The most important of all is to be a defensive driver, and avoid falling into the hands of con artists. Always stay alert to what is going on around you. Don’t trust the person who waves you into traffic. Also, do everything you can to keep a cushion of space between you and the car ahead.

When you do get into an accident, you need to keep a record of everything. You should listen to everyone’s version of the story and keep a copy of the police report. Try keeping a disposable camera in your car to take pictures of damage. If you are suspicious that this might be a scam, let your insurance company know. They are the best people to inform, as they are experts on this topic.

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