Car Insurance Scams Cost Us All
Auto insurance fraud has many victims-some obvious, some not so obvious. Clearly, car insurance scams can lead to injuries, even fatalities. A frequent scam is the \”staged accident,\” in which con artists force innocent drivers into accidents so that they can collect against the victim’s car insurance. These can easily lead to death or serious injury.
Whether or not anyone is physically hurt, there are serious and substantial costs associated with this sort of scam. The office of New York Senator Charles Schumer estimates that car insurance fraud like this costs New Yorkers 1 billion dollar »”>billion dollars annually – or about $200 per driver, per year – in increased insurance rates. The insurance companies don’t absorb the costs of these fraudulent claims; they simply pass these costs on to the consumer.
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.
The \”Scoop and Squat\” is easy to spot and commonly used. Two scammers in separate cars box in a victim and force a rear-end accident. They do this by driving closely in front and directly to the side of the innocent driver. The car in front slams on its brakes, leaving the victim not enough room to stop, and no exit to the other lane. The victim is powerless to stop the accident.
Another common con used in car insurance scams is the \”T-Bone.\” This highly dangerous operation involves intentionally ramming into the side of a car in an intersection, as it passes a light or stop sign. The con artist is aided by confederate witnesses who all claim that the victim ran the light or sign. This type of hit often results in injuries, as many cars do not have side airbags and the attacking car can make direct contact with the driver or passenger.
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.
What, if anything, can we do to protect ourselves from auto insurance scammers? Being a careful driver is the best way. But if you are in an accident, it is important to keep a close and careful eye on the other people involved. Get all their information, even the passengers. If any of these people engaged in insurance scams in the past, your records may help catch them. Taking pictures of the accident scene is helpful too, as it allows the authorities to have a better understanding of what actually happened.
Protecting yourself means finding a trustworthy repair shop. Your insurance company can help with this. Ask for their recommendation. Once you have a reputable garage, make sure to ask for an itemized listing of the repairs they did. If something seems suspicious, ask questions. Getting a second opinion from another repair shop is always a good idea.
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.
Filed under: Business