Insurance Fraud comes in several forms, because the creative thinking of the unscrupulous "bad actors" who are involved in its schemes have developed. Here are some things that you as a consumer and driver, can do to prevent yourself from becoming a victim and a pawn in this dangerous game.
Most insurance agents are reputable individuals, who uphold the ethics your state’s Department of Insurance sets for their behavior. There are however occasionally, individuals who will collect premium dollars, never intending to forward the money to an insurance carrier, on your behalf. Be sure to always await confirmation that insurance is in place, via a Declarations Page in the mail. If you do not receive a Declarations Page, call the company your agent has indicated to be your insurance carrier directly, to confirm your coverage and ask for verification in writing. If you do not have the name of the intended insurance carrier, call your agent and request this information. If you have any difficulty in obtaining information or written verification, contact the Department of Insurance for your state. If a policy does not look right, call to confirm coverage. There have been occasions when insurance agents have issued "fake" policies to consumers.
If you have any doubt about the credibility or licensing of an insurance agent, contact the Producer Licensing Bureau at your state’s Department of Insurance. Some states have web sites which allow you to confirm the licensing, types of insurance transacted, and even continuing education completed by, your insurance agent. If there are complaints against the individual, they may or may not be noted, depending upon timing. Don’t be afraid to ask about a situation if you have a concern. Your Department of Insurance exists to protect you.
Drivers come in as many varities as all of humanity. Carefulness and adherence to the law vary greatly within this population. The law does have an expectation of "prudence" among those given the priviledge of driving. This being said, unfortunately there are drivers who prey upon those who are not actively aware of their environment. Following are some criminal driving schemes to be on guard for, as you go about your business.
It was a beautiful stary night. I was driving home from the grocery store, on an unlit country road. Suddenly a car came up behind me, at a high rate of speed, pulled in front of me, and then screeched to a stop. This was no fortuitous event. It was clear to me that I was meant to collide with the vehicle, so that my insurance could be collected for damages to the vehicle, and injuries to the occupants. I did not fall prey to this attempt, because I had my vehicle in control, and was watching in my rear view mirror. I was already anticipating a problem, before the vehicle pulled ahead of me, and adjusted my speed accordingly. This is the classic "swoop and squat" scheme.
I had just pulled into a large parking lot. I proceeded toward the front of an aisle of parked cars. Suddenly the car ahead of me began to reverse at a high rate of speed. I immediately hit my horn, and continued to sound the horn, until the other driver stopped his movement. Within seconds, the driver lurched his vehicle forward, and drove out of the parking lot, running two stop signs, as he made his escape. This too was an attempt to take advantage of my insurance. I once handled a similar auto insurance claim in my work. The responsible party in the accident insisted that my insured had rearended him. As it turns out, he had backed into my driver’s vehicle.
Parking lots present special hazards, since there is always someone coming or going. A elderly neighbor relayed a scenario to me, that she experienced, and did fall victim to. She had just gotten inside her vehicle and put her car in reverse. Before she was able to complete her backing, a vehicle parked directly opposite of her backed up in a hurry, and then maintained that she had "control" of the aisle of the parking lot, when she was backed into by this neighbor.
Her vehicle was damaged, she paid a deductible, her premium went up as a result of a fault accident, and her insurance carrier was forced to pay for the alleged injuries of the other party. She knew she was not at fault, but unfortunately was not cautious enough in documenting the circumstances, and sequence of the accident. The key prevention technique here is to be very aware of your environment, and prepared to wait out a dangerous possibility. Just sitting in your car, till the coast is completely clear, can save you from this outcome. Secondly, if a "crash" does occurr, document the event like a reporter. Get all the facts and information. Take photographs. If there are passengers in the other vehicle get their names and addresses. Many criminals will fill a vehicle with "fake" passengers, to collect "pain and suffering" for additional injury claims.
Never go to a body shop recommended by another driver or a "witness" to the "crash". There are body shops that are less than reputable, and the reworking of your damages can cost you a fortune. Your insurance carrier can usually provide you with names of "preferred" shops. This means the business is regularly inspected for the quality of work, scope of damages, engine and body parts used in repairs, training of employees, and the way they treat customers.
If you are involved in any situation that appears fraudulant, please be sure to call the Fraud Division of your insurance carrier, the Fraud Bureau of your Department of Insurance or the National Insurance Crime Bureau at 1(800)835-6422. You are doing the responsible thing by reporting fraud. Preventing and curtailing auto insurance fraud, assists every insurance consumer, by lowering premiums, otherwise inflated to keep "bad actors" in their criminal business pursuits.
Source : autoinsurancetips.com/how-protect-yourself-insurance-fraud
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