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Scams You Should Be Aware Of When Acquiring Auto Owners Insurance


When you buy insurance for the car you own, it is very important to always make sure that you get your money’s worth. But how do you exactly do this when there are fraudulent practices and schemes by other people with the goal of collecting most money from you—even if damages done to them should not even be covered by your auto insurance?

Auto insurance scams had been around since the invention of cars and other vehicles. This is to say that along with the first offers for car insurance, scams already existed as the insurance system opened doors for fraudulent practices and schemes to prevail. Throughout history, there were instances of scams in the forms of deliberate ship sinking in international travel to get most money from people who are compelled to buy insurance in case they meet accidents along the way.

More specifically for cars, scams are either done by individuals or criminal networks. The need to be more cautious when it comes to knowing fraudulent practices and schemes against you becomes increasingly important before your auto insurance can even pay for other people’s supposed damage claims.

The first basic thing to be aware of are the different kinds of insurance scams being practiced. This will be helpful to every car owner with auto insurance or planning to buy auto insurance.

There is what other insurance companies car set-up car accidents. Drivers in this scheme would immediately go in front of another car with the aim of making it appear that he or she was rear-ended by the innocent driver of the other car. The impact then will cause damages and sometimes even physical injuries to be the liabilities of the innocent driver. This leads to more collection of money from the person or group employing the scheme.

Another scheme is when drivers intentionally cause more damages or destruction to their own cars by going to other places and hitting objects, etc… just to make their cars appear more smashed, broken, or devastated. This is done after an actual original accident or a set-up car accident. Those employing this scheme take advantage of an actual car accident they’ve been to—whether set-up or real—in order to aggravate damages and destruction to cost the innocent driver more money to pay.

With the two types of scams illustrated above, those who wish to buy auto insurance auto or have auto insurance ought to know that not all instances require automatic insurance coverage especially when fraud and scams are present.