Protecting Yourself from Auto Insurance Scams


Unscrupulous people go to any extents to rob money from innocent people and this is true even in the auto industry. There are many people who pull off auto insurance scams so that they can rob innocent drivers and the best way to protect yourself is to equip yourself with knowledge. This article will help you understand the various kinds of auto insurance scams and ways you can protect your own interests.

Fake Companies Offering Attractive Packages

The most common of all the various auto insurance scams are fake companies offering extremely attractive and lucrative offers. These companies offer car owners schemes that are too good to believe and once the car owners register with the fake company, the company closes shop and vanishes. The best way to protect yourself from such scams is to register with reputed companies and beware of any company that offers extremely lucrative schemes.

Organized Accidents with Help

Many scam artists organize accidents and they move in close to people who are backing out from a parking space. These scam artists wait for the car owner to back out and then they slam into your car making it look like an accident. Such scam artists disconnect their break lights so that you will not be aware of their movements before the accident. The best way to protect yourself from organized accidents is to park leaving a distance and keep an eye out for people who drive slowly close to you without their brake lights on.

Using a Fake Witness to Prove His Side of the Story

After an organized crime has been committed the scam artist will most likely deny that he had closed in on you and he may find a fake witness to prove that he is innocent. In such a scenario you should exchange details as per the protocol and contact your auto insurance company right away.

Offering Help but Actually Causing Financial Damage

In this type of scam the scammer will be at the site of the accident and offer you medical or legal help but he will take you to a doctor or lawyer who is included in the scam. The doctor or lawyer will charge you an extra amount without you knowing what really happened. The best way to protect yourself from such people is to call 911 in case of an accident and to contact your insurance company instead of taking help from strangers.

Scam Artists Impersonalizing Collection Agencies

Some scam artists get to know if you have been in any accident and then they pose as a collection agency to loot you. These scam artists can be located at accident scenes and they use your disadvantage to their benefit. The best way to protect yourself from this particular auto insurance scam is to ask questions if you are contacted by a third party collector and direct him to your insurance company for any settlements.

If you feel that you are a victim of an auto insurance scam then you should follow the protocol but you should alert your insurance company about the other party. You should let your insurance company know exactly what happened and find a witness who can back your true story. If the other person in the accident asks you to pay him cash and says that he doesn’t want to get the insurance company involved then you should not give that person cash but you should inform your insurance company of what happened.