Auto Insurance Fraud Means Dangerous Roads And Higher Premiums
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by: SusanTanner
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Car insurance Fraud is far from a victimless crime. There are the obvious victims: those people injured or even killed by a \"staged accident.\" In a \"staged accident,\" the perpetrator deliberately smashes into the victim's car, in hopes of cashing in on that person's car insurance. It is easy to see how this could lead to serious injuries or fatalities to innocent people.
The money to pay these fraudulent claims has to come from somewhere, and that \"somewhere\" is the typical American driver. In New York State, this adds an average of $200 to every driver's yearly insurance premiums. Senator Schumer's office estimates the total yearly cost to be 1 billion dollars for New Yorkers alone.
How does this happen? Well, auto insurance fraud takes many forms. The best way to protect yourself is to be skeptical when any accident occurs, and to watch out for common con artist schemes. You should also know how to collect information at the scene of an accident that can protect you against cons.
Some tactics for creating accidents are so common that they have their own street names. For example, there's \"The Swoop and Squat.\" This involves using two cars to box in a victim. The first driver \"swoops\" in front of the victim, so close to the victim's car that he or she has no time to react. Then the second car slides in next to the victim so that they cannot change lanes. The front car slams on the brakes and the victim can do nothing but plow into the scammer.
One of the most common and dangerous staged accidents is the \"T-Bone.\" This is when the scammer smashes his or her car into the side of a car passing innocently through a green light or stop sign. Accomplices then falsely claim the victim ran a red light or stop sign. Because so few cars come equipped with side airbags, this type of fraud causes many serious injuries, and even deaths, to the victims.
Some accidents are innocent mistakes later turned into car insurance fraud. Repair shops play a huge part in this. Scammers at repair shops can claim excessive damage to the car, or claim excessive costs to fix the car, and bill the insurance company accordingly. They can also falsely deem a car to be worth less than the cost of repairs needed, meaning it is \"totaled.\" They can then profit by giving the still usable car fake VIN numbers, or by selling away its parts.
So, what can you do to protect yourself? First, drive defensively and make sure that if you are in an accident that you take note of any suspicious behavior on the part of the other drivers and their passengers. Get full information from everyone, and take pictures of the accident. These can help in determining the severity of the accident, and if any of the people involved has a history of insurance fraud, they may be caught.
An honest repairman is any driver's best friend. If you don't have one, your insurance company may be able to give you a recommendation. Comparing estimates at two different shops can help. Even at the most honest repair shops, however, it is in your best interests to get an itemized description of all work done. If the descriptions don't make sense it is important to ask for clarification.
Even victims who survive car insurance scams unscathed can feel helpless and angry. The best defense for keeping insurance costs low, your driving record clean, and the roads a little safer is simple: Street smarts and good documentation.
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