Car Insurance Scams Cost Us All
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 car, in hopes of cashing in on that person's car insurance. It is easy to see how this could lead to serious injuries or fatalities to innocent people.
But there are also substantial financial costs associated with insurance fraud, and these have widespread consequences. In the state of New York, Senator Charles Schumer's office found that car insurance scams cost each driver in New York about $200 a year, for a total of 1 billion dollars. Car insurance quote numbers skyrocket because someone has to pay for all of these claims.
How does this happen? Well, auto insurance fraud takes many forms. The best way to protect yourself is to be skeptical when any accident occurs, and to watch out for common con artist schemes. You should also know how to collect information at the scene of an accident that can protect you against cons.
The \"Scoop and Squat\" is easy to spot and commonly used. Two scammers in separate cars 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 car in front slams on its brakes, leaving the victim not enough room to stop, and no exit to the other lane. The victim is powerless to stop the accident.
One of the most common and dangerous staged accidents is the \"T-Bone.\" This is when the scammer smashes his or her car into the side of a car passing innocently through a green light or stop sign. Accomplices then falsely claim the victim ran a red light or stop sign. Because so few cars come equipped with side airbags, this type of fraud causes many serious injuries, and even deaths, to the victims.
Some accidents are innocent mistakes later turned into car insurance fraud. Repair shops play a huge part in this. Scammers at repair shops can claim excessive damage to the car, or claim excessive costs to fix the car, and bill the insurance company accordingly. They can also falsely deem a car to be worth less than the cost of repairs needed, meaning it is \"totaled.\" They can then profit by giving the still usable car fake VIN numbers, or by selling away its parts.
What, if anything, can we do to protect ourselves from auto insurance scammers? Being a careful driver is the best way. But if you are in an accident, it is important to keep a close and careful eye on the other people involved. Get all their information, even the passengers. If any of these people engaged in insurance scams in the past, your records may help catch them. Taking pictures of the accident scene is helpful too, as it allows the authorities to have a better understanding of what actually happened.
Protecting yourself means finding a trustworthy repair shop. Your insurance company can help with this. Ask for their recommendation. Once you have a reputable garage, make sure to ask for an itemized listing of the repairs they did. If something seems suspicious, ask questions. Getting a second opinion from another repair shop is always a good idea.
Car insurance scams can make all of us feel angry and helpless. But with a little street smarts and good documentation, you can protect yourself against many insurance fraud schemes and keep your own record clean while helping to combat the skyrocketing costs of auto insurance.
Article Source: http://www.search-raven.com
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