The High Price Of Car Insurance Scams | Insurance

By SusanTanner
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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.

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 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 do we know if an accident is \"staged\"? Educate yourself before it happens, and write everything down if it does. By understanding the typical scenarios, and paying close attention at the scene of an accident, it is often easy to spot a scam.

Some tactics for creating accidents are so common that they have their own street names. For example, there's \"The Swoop and Squat.\" This involves using two cars to box in a victim. The first driver \"swoops\" in front of the victim, so close to the victim's car that he or she has no time to react. Then the second car slides in next to the victim so that they cannot change lanes. The front car slams on the brakes and the victim can do nothing but plow into the scammer.

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.

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.

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.

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