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Common Car Insurance Frauds

Common Car Insurance Frauds Blog

As scary and unpleasant as it might be to hear, car insurance frauds happens. Besides the fact it can happen to anyone at any time, it is most often perpetrated by the most unexpected individuals. Car insurance scams have always been around. Recently, however, the cases of people who’ve fallen victim to these insurance scams have been steadily increasing. The methods of duping unsuspecting individuals have become more advanced, so it becomes essential you stay on guard. There are several antics that these nefarious individuals employ. We’ll be highlighting the most popular ones in this post.

Without further ado, here goes:

The Vehicle Theft Scam

This is one car insurance scam that you have to be very careful of. It’s incredibly difficult to detect because it doesn’t occur in a manner you can easily spot. What happens here basically is that a fraudster reports your vehicle as burgled or stolen to use this to validate a claim from your insurance company. It requires that they work with law enforcement agencies to pull this off and don’t be surprised that they do! To protect yourself against this, the moment you discover your vehicle has been stolen or broken into, contact your insurer right away. As an added precaution, be careful of lodging your complaint in a setting with unfamiliar people. Also, fill out the police report yourself. Don’t accept assistance from anyone with that.

The Towing Scam

Here, what happens is that they stage a team that looks out for accidents. As soon as one happens, the fraudsters swoop in with a tow truck, pose as legit individuals and pressure you into using their services. There isn’t any doubt that the authorities are as proactive as they can be. Nevertheless, always beware when the timing seems too good to be true. As such, even though you’ve just been involved in an accident, be sure to try to keep yourself balanced. Once you’ve managed to get your bearing after the accident, endeavor to get in touch with your insurer immediately and have them sort out the details of moving your damaged car.

Exaggerating Loss/Damage When Filing Claims

We’ve been discussing the insurance frauds that amoral people may perpetrate against you so far. However, exaggerating the loss or damage done to your vehicle is a fraud you may easily commit as a vehicle owner. Inflating the price of repairs a little here and there might seem only fair to you. After all, you’ll be undergoing a significant amount of stress as a result of the repairs your vehicle will have to go through. What’s the harm in making something out of it? The fault with that logic is that lying while filing your claim is a fraudulent act and can have some profound legal implications.

More than that, it could lead to your entire claim being rendered invalid. To that end, it’s always best you stick with the truth and not deviate from it. There you have it! Knowing these things for what they are now, you can devise easy measures of countering them. In the same vein, if you suspect insurance frauds is afoot, don’t hesitate to contact the appropriate authorities!

Nick Lai
the authorNick Lai
Founder & CEO of NickMetrics Group

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