The Most Common Types Of Car Insurance Scams
Avoiding scams can be difficult, especially if you are unaware of the hidden dangers and commonly used schemes. Several types of car insurance scams have become exceptionally popular over the past few years.
Staged accidents are rather popular. The name explains what the scam is all about, but here is how it works.
The person responsible for causing the car accident will also have to pay for damages. This payment is traditionally provided from car insurance. Very often, drivers master the skill of getting into a car accident in order to get a payment from somebody else.
The easiest way to cause a car accident and to launch the car insurance scam is to step on the break very suddenly. A distractive driver could hit the car from behind. In this instance, the accident is staged, but the driver who 'caused' it will have to make a payment.
Criminals use many ways to cause accidents. These traditionally take place in busy intersections where the cause of the accident will be difficult to pinpoint. Scammers have become so skilled that very often the victims start believing they are guilty for the car accident that has taken place.
Avoiding scams of this nature can be rather difficult. It takes superior concentration and driving skills to avoid a staged accident.
Fraud connected to car accident injuries is rather common as well.
In most car accidents, people are likely to suffer some harm. Car insurance scams focus on that aspect of any road problem. The person responsible for the accident or somebody else involved may pretend that very severe injury has been suffered.
Very often, these claims tend to be exaggerated. The only aim of the so-called culprit is to receive insurance money.
Understand the fact that more than one criminal could be involved in a car insurance scam. Some of the plans are so complex that they require many participants and a detailed preliminary plan.
Swoop and squat is one such type of scheme. Three cars are involved in it; two of them have criminal intentions. The two drivers in the scheme maneuver around the third car, often undertaking risky overtaking, which forces one of the people to slam on the brakes and getting the 'innocent' driver to cause an accident.
Most frequently, car insurance scams involve one type of staged car accident or another. Arson may occur as well, but this scheme is less common and more unlikely to work. A car can also be reported to be stolen, when in fact it has been sold abroad.
Scammers are becoming more creative and new schemes appear constantly. Being aware on the road is a must in order to avoid such problems.