Understanding Auto Insurance Fraud
There are five different ways that criminals commit automobile insurance fraud. It is important for drivers to know about these ways so that they can spot and report any suspicious behavior to the local authorities and their auto insurance companies.
He first way is the smash and dash. This is when a driver hits you in a fender bender or other minor accident on purpose. This often happens to people near intersections and traffic lights. The driver will claim that they have been injured in their neck, shoulder, or back. These injuries are usually related to alleged whiplash. The driver is in fact a criminal and wants to bilk your auto insurance company out of as much money as possible for unnecessary medical treatments. Be vigilant about making sure that you look for any suspicious clues such as a driver who does not seem very upset that an accident has occurred or a driver who seems well-versed in auto insurance related claims.
The second type of fraud involves fake insurance brokers. These brokers are referred to as “ghost brokers”. They will try to sell you a very cheap auto insurance policy. They will promise you every discount under the sun. However, if it sounds too good to be true then it probably is. Make sure that you only deal with reputable auto insurance companies. Do your homework and always verify the information online. You can contact your state’s insurance commission as well if you think that you are being scammed.
The third type of fraud is an arranged accident between friends. This is when two drivers decide that they will engage in fraud. They will plan an automobile accident in advance. It will be a minor accident that they have practiced for a few days or weeks before. Then, the drivers will immediately call the police to report their accident and inform their auto insurance companies that an accident took place. They conspire with each other and then make sure that they can scam as much money as possible from both companies. They then decide to split the money that was given to them from their insurance companies. It is a hard type of fraud to prove because there are two drivers involved.
The fourth type of fraud is when people work together and have fake victims included in their automobile accident claim. For example, if a person who was driving was in an accident by himself but added fake victims later to collect more compensation. The fake person will try to collect compensation by saying that they were in fact injured in the automobile accident when they were not. This is why it is so crucial for a police report to be filed listing all of the names of the witnesses and victims that were present at the accident scene.
The final way that fraud is committed is by having fake soft tissue injuries. When this happens, a criminal works with physical therapists and other medical professionals who are knowingly committing fraud. The medical professionals fraudulently bill auto insurance companies for services that were never rendered and then they split the money.
It is very important for people to thoroughly understand auto insurance fraud. It happens every day in the United States and it can be hard to spot because these criminals are very slick individuals. Take the time to ask questions at an accident scene and never confront someone face to face but call your insurer because they can investigate the matter further.