Staged Accidents
One of the most prevalent insurance scams is the staged accident. Scammers may intentionally cause a collision and then exaggerate or fabricate damages and injuries to file fraudulent insurance claims. To avoid falling victim to this, be wary of reckless driving around you. They always file a police report after an accident, even if it seems minor.
Invented Damages
Scammers may also try to claim more damage to their vehicle than actually occurred or add “ghost passengers” to inflate their insurance claim. To protect yourself, get a police report, take photos of the accident scene, and don’t allow the other driver to dissuade you from contacting the authorities.
Fictitious Vehicles
Another common scam involves insuring a non-existent or stolen luxury vehicle, then reporting it as stolen to collect the insurance payout. Insurers can work with investigators to verify vehicle registrations before approving claims, so be cautious of any suspicious activity.
Rental Car Scams
Some rental companies may pressure you to buy their insurance even if your own policy already covers the rental. They may also falsely claim damages to get you to pay more. Refuse unnecessary insurance and carefully inspect the rental car before and after use to avoid these scams.
Fake Injuries
Scammers may claim whiplash or other hard-to-disprove injuries to get a larger insurance payout. Watch for inconsistencies in their story and always file a police report immediately after an accident.
Protecting Yourself
To avoid these and other insurance scams, it’s important to be wary of unsolicited offers or deals that seem too good to be true. Never give personal or financial information to unknown callers claiming to be from your insurer, and research insurance companies and agents thoroughly before doing business with them. Carefully review all documents and policies before signing anything, and file police reports promptly after any incidents. Finally, report any suspected fraud to your insurer, state insurance department, and the National Insurance Crime Bureau.
By staying vigilant and following these steps, you can protect yourself from becoming a victim of insurance fraud.
