Protecting Yourself against Automobile Insurance Fraud

Thursday, October 11, 2012

Protecting Yourself against Automobile Insurance Fraud



A car insurance policy is required in most states and almost all drivers and car owners understand it. However, the problem is that not all insurance companies are trustworthy. It is normal for them to do whatever it takes to negotiate for the lowest possible price but they should never cheat their policy holders. Unfortunately, many companies engage in frauds to earn profits. These are ways to protect against frauds.


Starting with car Insurance Agents  

Going to an agent for your car insurance quotes saves you time and allow you to find the best options. A service of an agent is a big help except when the agent plans to scam you. There are agents who collect money from consumers and don’t forward it to the insurer. Some even create fake policies. The end result is that the individual who paid the fee will not have an insurance policy. To avoid this, make sure that you know the name of the company and wait for a confirmation in the mail. Without a confirmation letter, you may consider calling the insurance company directly to know details about your coverage.

Other Drivers May Scam You

In addition, fraudulent automobile insurance companies and agents are not the only ones you need to be careful of. Auto insurance claims have been the target of some individuals who are desperate to get money. You may find yourself driving at night when another car came from behind at a fast speed and suddenly stops in front of you. It is a popular scheme to get compensation for the car damages and injuries of passengers.

As much as possible, do not drive in deserted roads especially at night to avoid “swoop and squat” tactics. Protect yourself by being always watchful of other vehicles especially the ones in front of you. Hitting the vehicle in front of you will always make you the cause of the accident so you will be the one to provide compensation through your insurance. Make sure to allot enough space between your vehicle and the one in front of you.

When a car accident has already occurred, act like a reporter and document everything from the number of passengers and the injuries they suffer to taking photographs and proofs. It is common for fraudsters to add more passengers to get bigger compensation. You should also wait for authorities before moving your vehicle. As much as possible, get records from the police and hospital as these will help you counter any allegations that you cause the accident.

Beware of Helpers

When an accident occurs, some people may come to you and tell you about doctors, mechanics and other people who can help you. Watch out because they may just overcharge and give some dollars to the one who recommended them. The result is that the insurance company has to pay more for the repairs and medications. It does not end there because insurance companies increase premiums after you filed a claim.

If you are entitled for a claim for repairs, look for reputed car repair shops. Avoid going to car shops that are recommended by other drivers or witnesses of the accident unless you have a good experience with those repair shops.

Author:

Christopher Steyn

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