How To Avoid A Car Insurance Scam | Auto Finance

By SteveJohnson
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It's never a good thing to find that you have been in a car accident, but finding that you have been scammed can make it that much worse. The results of such events can manifest in the form of higher insurance rates, license points, or even a canceled insurance policy. Afterwards, car insurance quotes that you receive can be out of this world, even though you were the simple victim of a scam. This happens quite often, so it is important that you know how people commit these scams so that you can plan to avoid them.

One of the most common scams is where the scammer stages a rear end accident. This usually occurs when someone is seen dodging in and out of traffic. They leave people very little room to avoid them. When they find the person that they want to scam, they will get in front of them and slam on their brakes. This causes the person behind them to run into them as there is no where else that they can go. Your insurance will take a hit because most rear end cases are found to be the second car's fault.

Often the staged rear-ender will be paired with the fake medical claim scam. The driver either successfully cons an innocent doctor into believing they have suffered injuries, or pays off a medical accomplice to fake examinations and test results. In either case, your insurance pays for their treatment as well as their \"pain and suffering.\" This type of scam is especially problematic in litigious states. California car insurance is particularly hard-hit, for example.

The Exaggeration Scam. In car insurance scams like these, the initial accident may be staged, but it may be a legitimate crash. In either case, the scammer in this situation does intentional damage to their vehicle before it can be appraised for damage. They claim the damage happened during the accident, and there is no way for you or your insurance company to prove otherwise.

The Helpful Scammer. Someone who helps you by telling you when the path is clear to enter traffic is a good Samaritan, right? Not always. In this scam, the \"helper\" waves you right into traffic and intentionally puts you in the path of another vehicle. When the police arrive or the insurance company investigates, however, the con artist claims that they never waved you in.

There is another version of the helpful scam that will occur after the accident as well. Various people get paid off to refer victims to doctors, lawyers, or repair shops that will often raise prices to get lots from your insurance company.

Knowing these scams do exist, do you know how to avoid them? The most important thing that you can do to avoid a car insurance scam is to drive defensively. Being alert to your surroundings can save you a lot of trouble. Make sure to keep space between you and the cars around you and do not trust those who wave you into other lanes.

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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