Avoid Being The Victim Of Car Insurance Scams

It's bad enough to have been in an accident, but then to find out that you've been scammed?

Your insurance rates go up, you may get points against your license, and, in the worst case, your insurance may be canceled and all of the car insurance quotes you receive afterward are astronomical. And you did nothing except get suckered. Unfortunately, this happens more often than you might think. However, if you know the ploys that con artists most commonly use, you can guard against car insurance scams.

The Staged Rear-Ender Scam. In this scenario, the scam artist dodges in front of you in traffic, coming as close to you as possible. Then, they slam on their brakes. They've left you no room to maneuver, and so you crash into their rear end. Since the police and insurance companies almost always decide that the second car is at fault in rear-end crashes, your insurance takes the hit.

Often the staged rear-ender will be paired with the fake medical claim scam. The driver either successfully cons an innocent doctor into believing they have suffered injuries, or pays off a medical accomplice to fake examinations and test results. In either case, your insurance pays for their treatment as well as their "pain and suffering." This type of scam is especially problematic in litigious states. California car insurance is particularly hard-hit, for example.

The Exaggeration Scam. In car insurance scams like these, the initial accident may be staged, but it may be a legitimate crash. In either case, the scammer in this situation does intentional damage to their vehicle before it can be appraised for damage. They claim the damage happened during the accident, and there is no way for you or your insurance company to prove otherwise.

The Helpful Scammer. Someone who helps you by telling you when the path is clear to enter traffic is a good Samaritan, right? Not always. In this scam, the "helper" waves you right into traffic and intentionally puts you in the path of another vehicle. When the police arrive or the insurance company investigates, however, the con artist claims that they never waved you in.

Another version of this scam involves "helping" you to find a lawyer, doctor, or body shop after an accident. In reality, the scammer is being paid a healthy fee to refer business to these people, and they will inflate their fees to get the maximum out of your insurance company.

So, how can you protect your self against car insurance scams? The most important of all is to be a defensive driver, and avoid falling into the hands of con artists. Always stay alert to what is going on around you. Don't trust the person who waves you into traffic. Also, do everything you can to keep a cushion of space between you and the car ahead.

If there is an accident, make sure you document everything that happened. If the police are called, make sure you hear everyone's statement and get a copy of the report. Keep a disposable camera in your glove compartment to take pictures of any accident. Finally, if you have any suspicions about an accident, make sure to tell your insurance company about them; they are experts in detecting and stopping scammers.

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