Reprinted Articles

Car insurance Fraud is far from a victimless crime. There are the obvious victims: those people injured or even killed by a \”staged accident.\” In a \”staged accident,\” the perpetrator deliberately smashes into the victim’s car, in hopes of cashing in on that person’s car insurance. It is easy to see how this could lead to serious injuries or fatalities to innocent people.

The money to pay these fraudulent claims has to come from somewhere, and that \”somewhere\” is the typical American driver. In New York State, this adds an average of $200 to every driver’s yearly insurance premiums. Senator Schumer’s office estimates the total yearly cost to be 1 billion dollars for New Yorkers alone.

How does this happen? Well, auto insurance fraud takes many forms. The best way to protect yourself is to be skeptical when any accident occurs, and to watch out for common con artist schemes. You should also know how to collect information at the scene of an accident that can protect you against cons.

There are a few types of accidents scammers use so often that they have slang of their own. The \”Swoop and Squat,\” is a common scam that involves two cars working together, forcing a third car into a rear end accident. One con artist \”swoops\” a car in front of the innocent driver, and then slows down. By keeping the car very close in front of the victim, it insures that the victim does not have adequate braking time to prevent an accident. And swerving into another lane is not an option for the victim either, as the second car effectively boxes it in by driving right next to it. When the car in front of the victim slams on its brakes, the victim has no option but to smash into the car in front.

One of the most common and dangerous staged accidents is the \”T-Bone.\” This is when the scammer smashes his or her car into the side of a car passing innocently through a green light or stop sign. Accomplices then falsely claim the victim ran a red light or stop sign. Because so few cars come equipped with side airbags, this type of fraud causes many serious injuries, and even deaths, to the victims.

Even if the accident is legitimate, that still does not mean that there isn’t a car insurance scam waiting to happen. Unscrupulous repair shops can inflate the cost of repair, claiming damage that did not occur, or exaggerating the seriousness of the damage. They may even declare the car \”totaled,\” which means it would cost more to fix it than it is worth, and then sell the car to a chop shop for parts, or to be put back on the road with fake identification numbers and paperwork.

So, what can you do to protect yourself? First, drive defensively and make sure that if you are in an accident that you take note of any suspicious behavior on the part of the other drivers and their passengers. Get full information from everyone, and take pictures of the accident. These can help in determining the severity of the accident, and if any of the people involved has a history of insurance fraud, they may be caught.

An honest repairman is any driver’s best friend. If you don’t have one, your insurance company may be able to give you a recommendation. Comparing estimates at two different shops can help. Even at the most honest repair shops, however, it is in your best interests to get an itemized description of all work done. If the descriptions don’t make sense it is important to ask for clarification.

Even victims who survive car insurance scams unscathed can feel helpless and angry. The best defense for keeping insurance costs low, your driving record clean, and the roads a little safer is simple: Street smarts and good documentation.

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Tags: Auto Insurance