Auto Insurance Fraud Means Dangerous Roads And Higher Premiums
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 automobile, in hopes of cashing in on that person’s vehicle insurance. It is simple to see how this could lead to serious injuries or fatalities to innocent people.
Whether or not anyone is physically injured, there are serious and substantial costs associated with this sort of scam. The office of New York Senator Charles Schumer estimates that vehicle 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 we’re victims of fraud? Knowledge and skepticism are our ideal defense. Know all the common con artist schemes, and be sure to collect all information from the other celebration involved in the accident.
The “Scoop and Squat” is simple to spot and commonly used. Two scammers in separate automobiles box in a victim and force a rear-end accident. They do this by driving closely in front and directly to the side of the innocent driver. The automobile in front slams on its brakes, leaving the victim not enough room to halt, and no exit to the other lane. The victim is powerless to cease the accident.
Another common con used in automobile insurance scams is the “T-Bone.” This highly perilous operation involves intentionally ramming into the side of a vehicle 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 vehicle 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 didn’t occur, or exaggerating the seriousness of the damage. They might even declare the vehicle “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 photos 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 might be caught.
Protecting yourself means finding a trustworthy repair shop. Your insurance company can help with this. Ask for their recommendation. Once you’ve a reputable garage, make sure to ask for an itemized listing of the fixes they did. If something seems suspicious, ask questions. Getting a second thought from another repair shop is always a good idea.
Vehicle insurance scams can ruin good driving records, cause injuries and higher premiums, or worse. It’s no wonder that the average driver might feel angry, and even helpless to stop it. The good news is that by gaining a tiny knowledge of common scams, and by writing down a lot of evidence in the event of an accident, we have the ability to make driving cheaper, and safer.
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