Avoid Being The Victim Of Car Insurance Scams

Getting into a car accident is never good, but finding out that you have fallen to a car insurance scam can make matters much worse. You will find that your insurance rates will go up and your policy may even be canceled. You will also get points on your license. This will make any new car insurance quotes that you get extremely high, simply because you were scammed. This is something that happens all of the time, so you need to know how people scam insurance companies in order to avoid it.

One of the most common scams is where the scammer stages a rear end accident. This usually occurs when someone is seen dodging in and out of traffic. They leave people very little room to avoid them. When they find the person that they want to scam, they will get in front of them and slam on their brakes. This causes the person behind them to run into them as there is no where else that they can go. Your insurance will take a hit because most rear end cases are found to be the second car's fault.

The scammer will often file a medical claim to coincide with this insurance scam. They may talk a doctor into believing that they have been hurt, or they may pay off a doctor to say they have been hurt. In both cases, your insurance is the one that will have to pay for medical bills and pain or suffering claims. California, and other litigious states, can find this scam particularly troublesome.

The Exaggeration Scam. In car insurance scams like these, the initial accident may be staged, but it may be a legitimate crash. In either case, the scammer in this situation does intentional damage to their vehicle before it can be appraised for damage. They claim the damage happened during the accident, and there is no way for you or your insurance company to prove otherwise.

Another common car insurance scam is seen when a seemingly friend person waves you into your lane change or turn. This may come across as a nice thing to do, but they are actually telling you to get into a bad situation. Chances are, the path is not clear, and you will get into an accident. When police arrive, the person claims that they never told you it was clear.

Another version of this scam is seen after the accident itself. People can refer you to various lawyers, doctors, or car repair shops, in order to make a nice sum of money. These businesses then raise their prices in order to make quite a bit off of your insurance policy.

Knowing these scams do exist, do you know how to avoid them? The most important thing that you can do to avoid a car insurance scam is to drive defensively. Being alert to your surroundings can save you a lot of trouble. Make sure to keep space between you and the cars around you and do not trust those who wave you into other lanes.

Chances are, you will get into an accident sooner or later. Try to take pictures and document everything at the scene. Get and keep a copy of the report, after you get the chance to hear everyone's story. If you have the sneaking suspicion that this is a scam, let your insurance company know right away. They are best equipped to handle and stop scammers.

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