Five Ways to Fight Auto Insurance Fraud Auto insurance fraud is resulting in dangerous accidents and is driving up the cost of auto insurance for everyone. Learn how to identify and fight this growing problem before your life or property is threatened.
Watch out for staged accidents Most fender benders are just accidents, but increasingly, individuals or organized groups of people are staging accidents, then filing phony or exaggerated insurance claims for property damage and personal injuries. As hard as it might be to believe, staged accidents are often carefully orchestrated, involving people who are paid to pose as victims and witnesses, as well as doctors, attorneys, and body shop owners who are paid to substantiate fraudulent claims. One common staging technique works like this: a driver suddenly pulls in front of you and deliberately stops, causing you to rear end the vehicle at low speed. Occupants of the vehicle you hit then claim to have serious injuries, often to the neck or back. To avoid a staged accident, never tailgate, and watch drivers in the lane next to you. Be especially wary if you are driving alone in a large, late model car. Criminals often target luxury vehicles since their owners are more likely to have extensive insurance coverage.
Call police to the scene of an accident Call the police even if damage to the vehicles involved is minor. Although doing so won't prevent all fraudulent activity (professionals sometimes want police called to the scene to lend credibility to their claims), it may discourage some individuals from inflating legitimate insurance claims later. Don't forget to get a copy of the police report for your records.
Document damage Keep an inexpensive camera in your vehicle in case of an accident. After an accident, walk around the other vehicle involved to see what kind of damage has been sustained. It's very easy to forget details in the aftermath of an accident, so take photos and detailed notes. And get the names, addresses, phone numbers, license numbers, and descriptions of the driver, vehicle occupants, and any witnesses at the scene.
Report all accidents to your insurer One way to help discourage insurance fraud is to report all accidents to your insurance company. Let your insurer know about any suspicious details. Fraud can be hard to detect, but here are some things to watch out for:
Was the vehicle you hit a large, older model car with several occupants? Did the driver of the other vehicle claim that he or she was trying to avoid an animal or a child, or was cut off by another vehicle that you never saw? Did strangers offer to refer you to a particular doctor, attorney, or repair shop? Did any of the passengers in the other vehicle leave the scene of the accident before the police arrived?
Report suspected fraud If you suspect that you may have been a victim of auto insurance fraud, contact your insurer, as well as your state's insurance fraud unit. Auto insurance fraud can also be reported to the National Insurance Crime Bureau hotline at (800) TEL-NICB.
Written by Term Life Insurance Quotes |Term Insurance Quote : BeamaLife
To avoid a staged accident, never tailgate, and watch drivers in the lane next to you. Be especially wary if you are driving alone in a larg...