Auto insurance scams have become pretty common these days. With rising costs and people losing jobs all over the country, there is a rise in such white collar crime. The main reason for this is that it is easy and people are getting away with it. And another factor is that people assume that it is not a crime considering that the insurance company ends up paying for it. But the truth is that the victim is penalized with an increase in premium.
We shall now discuss the most common techniques employed by these criminals and see how we can avoid them.
The most common type of scam is called the tail gating technique. The offender pulls up in front of your vehicle when both your cars are moving at a high speed. Then all of a sudden he abruptly slams on the brakes, giving you little or no time to react. And you end up ramming into the rear end of his car. And it looks like you caused the accident because you were behind the other car. This is the main reason why drivers are always advised to maintain a safe driving distance of at least two cars with the car in front of them. This way you will have ample time to react to the driver ahead of you. Because in this case, a rear ending will in all situations be construed as your fault.
Another auto insurance scam is to take an accident damaged car and cause extensive damage to it at a different location. And later the offender will claim for all the damages from your insurance company. This way the offender can make enough money to sell the car and buy a new one. And he also does not need to pay more premiums to his own insurance company. Hence always be sure to call the police and register a complaint right at the scene of the accident. Else, even if you wish to settle it out of court, you must take it in writing that all issues have been settled amicably.
Some auto insurance scams involve a large number of people working in collusion. This could include doctors, lawyers and even body shop people. All of them will be in on the scam and together they will ensure that your insurance limit is maxed out. This is one of the reasons to be suspicious of any help being offered after you have met with an accident. If the other party or anyone else at the scene of the accident offers the contact details of a lawyer or doctor, always be suspicious. And if you are not sure about the genuineness of the accident, you can lodge a complaint with your insurance company.
The insurance company employs a large number of experts from various fields who conduct routine investigations of all accidents. The company will have everyone right from a doctor to a mechanic on their payroll. They can also act as your attorney in order to fight your case in court even if you are not at fault. If you have a reason to believe that something is fishy about anything related to the accident, all you have to do is call the 1800 number of your insurance company.