subject: Car Insurance Accident Scams (1) [print this page] Insurance are paying millions to defend themselves against car scams where people stage an accident in the hope to making some gains through insurance claims. How do these scams affect you? Besides any possible deaths could occur from a planned scam gone wrong, it is not the insurance companies who pay the consequences of these wicked scams. Factually the innocent and honest citizens end up paying higher premiums so insurance companies could cut their losses.
You should learn how to prevent getting in the middle of these scams and should contact your insurance if you feel you could be scammed or are a witness to a scam. You could potentially be rewarded for providing this information.
Here are some most popular methods that scammers use to cheat auto insurance providers and create false claims.
Paper Accident- when the scammer gets those in the auto repair to get involved and report an accident that never happened in reality. Normally the claim would not exceed $1000 to avoid raising any red flag where insurance companies would feel the need to conduct an investigation.
Hit & Run- occurs when the criminal reports a fake hit and run and tries to get claims from their insurance policy.
Swoop & Squat - happens when the scammer suddenly rushes in from of the car and drastically slows down or stops suddenly. There is an accomplice vehicle that does not allow the trapped vehicle from moving away to prevent an accident. The passengers in the squat car then send in claim reports for their injuries which are then accompanied by reports from doctors who are also involved in the scam.
Car Insurance Accident Scams (1)
By: araks
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