Car Insurance Fraud – What You Need to Know
Car insurance fraud is one of the most widely perpetrated crimes in the insurance world. There are different ways in which fraudulent activities are done to trap the innocent and milk thousands of dollars out of him. Though insurance companies have their own sets of ways to find out if an accident was genuine or made-up, there are also ways in which you can avoid being a victim of car insurance fraud.
There are three terms that you need to be aware of when it comes duping a person through insurance fraud- ‘rear-ender’ scam, panic stop and swoop and squat. In the ‘rear-ender scam’ the fraudster will drive his car in front of you and then apply hard brake so that it looks like you have hit his car from behind. The ‘panic stop’ is when a group of miscreants driving a car will come in your way and one of the passengers will signal the drive to make a move and brush the car close to you. When you hit their car, each passenger would give testimony and ‘collective proof’ of how you rammed their car. The ‘swoop and squat’ is when two vehicles are moving alongside each other. One of the cars cuts and disappears into the lane quickly while the other one is ‘hit’ allegedly by your car. The car that swoops and zooms into the lane is the ‘swoop vehicle’ and the car that’s hit is the ‘squat car’
In all of the above three cases, you will be made to appear as the villain of the picture; the law and the insurance company may assume that you caused the accident. In such a case, the criminal may ask you for compensation and your insurance company will have to pay him, making you liable to pay high premiums to cover that insurance. How can you prevent yourself from falling prey to these types of car insurance or automobile insurance fraud? Here are some handy tips:
1. Keep a sharp eye on the automobiles around you. Do not allow cars to brush past you especially if there is no traffic. Keep an eye on vehicles that look as if they are intentionally following you. Keep your eyes open at passengers who are looking at you for prolonged amount of time
2. Keep a safe distance between your vehicle and the other one. Do not closely follow another vehicle; if it suddenly applies brakes and stops in front of you, you will end up colliding against the vehicle and you will be probably held accountable for that accident
3. Though traffic rules forbade you, people do the opposite and talk on the phone during driving. Also do not constantly converse with people in your car while driving and do not turn your back often because it can be distracting.
If you have car insurance, you will be able to get cover during both genuine accidents and also against accidents perpetrated by scammers. However, if you are blamed for a car accident and do not have coverage, then you can be liable for those damages out of your own pocket