There are many different types of car insurance frauds, but all of them have one goal in common: to get money from the insurance company illegally. Some of the most common types of car insurance fraud include:
Faking an accident or injury
Faking an accident or injury is probably the most common type of car insurance fraud. People who have a history of making these claims may be more likely to commit one in the future, so not only does it cost them money, but also costs all the rest of their neighbors in premiums.
· Staging car accidents
You might think that you could never fall victim to staged car accidents, but many drivers have fallen prey to these schemes. This type of auto insurance fraud is committed when two people stage a collision in an attempt to make money from the insurance company through personal injury lawsuits.
Inflating the value of a stolen car
When a car is stolen, the owner’s insurance company usually agrees to pay them the value of the vehicle. However, some people try to illegally inflate this amount in order to get as much money as possible from their insurer.
How to Avoid Auto Insurance Frauds
Reporting suspected fraud immediately is the best way to avoid being a victim of car insurance fraud. If you suspect that someone is committing one of these types of fraud, report it right away so that authorities can investigate the situation before too much damage has been done.
Reporting a Fraudulent Claim
To report fraudulent claims, contact your state’s department of insurance. Share as much information about the suspected fraud as you can, and be sure to include:
· The person who committed the fraud
· When and where it happened
· How they committed it
Also, take pictures or videos if possible in order to provide visual evidence of the fraud. This can help investigators build a stronger case against the perpetrator.
If you are ever in an accident, be sure to protect yourself by following these tips:
· never exaggerate your injuries
· only talk to the police and insurance company representatives about the accident
· keep all receipts related to the accident