Guide on Preventing Auto Insurance Scams


Each and every industry is prone to being affected by unscrupulous people who trick others for their own benefits. The auto insurance industry is no exception to this phenomenon since many unscrupulous people trick car owners for their own benefits. This article will elaborate on some of the common types of auto insurance scams and a few ways to avoid these scams.

Accident Scams

Staged accidents also known as rear end accidents are the most common type of auto insurance scams. In this type of scam the scammer gets behind an innocent car driver and then the scammer slams on his break which causes his car to bump into the other car driver’s car. Since the scammer usually disconnects his brake lights before pulling off this scam the best way to detect such a fraud is to look out for non functional break lights when someone is moving close to your car. Other ways to prevent this type of fraud is to maintain a safe distance while parking and backing in or out of a driving space.

Injury Scams

After an accident has occurred many scam artists fake additional injury and they try to get money out of innocent car drivers. These scam artists may or may not stage the accident but they definitely stage the part where they have been hurt. Scam drivers often try to convince the innocent car driver that it is better for the driver to pay him medical charges rather than contacting the insurance company. The best way to prevent this type of scam is to call the insurance company and inform them of what happened rather than giving the scammer money for any reason.

Medical or Paralegal Scams

Many medical professionals and paralegals take an active part in auto insurance scams. These professionals are informed well before hand that a staged accident is going to occur and the scammer refers the injured or scared car driver to medical or paralegal professionals. These professionals then charge the injured or scared driver excessive fees for their services. The best way to prevent these scams is to call 911 if you are injured and to call your own lawyer for any legal purposes.

Collection Scams

Some scammers prefer to use the indirect way to scam people. These people keep track of any accident that may have occurred and they then call the car drivers posing as a collection agency. The scammers extract money out of the innocent car drivers by saying that their claim was rejected and that they need to pay up or else their credit score is going to be affected. The best way to prevent such scams is to ask for the caller’s license number and to ask them questions about their company. Before issuing a check or any other type of payment to anyone you should first double check the information with your car insurance company to make sure that the call wasn’t from a scammer.

Things to Do if You Are a Victim of an Auto Scam

If you are a victim of an auto scam then you should exchange insurance and personal details as you normally would but you should inform the auto insurance company of your suspicion. You should give the vehicle insurance company details of the accident like how the other driver backed in and any other important details. You should also find a witness who can back up your story that another driver backed into your car purposely.