We hope you're never involved in a car accident where someone gets injured. However, if you are, it's important to know that people sometimes exaggerate their injuries. In some cases, drivers will even stage an accident to cash in on an auto insurance claim.
According to the Coalition Against Insurance Fraud, fraudulent claims involving bodily injury are on the rise. Aside from hurting auto insurance companies, who then have to charge more to cover their operating costs, these fake claims also hurt you by affecting your insurance record with a costly claim and possibly raising your monthly premium — and they may add a few gray hairs too.
Here are some tips you can use to help prevent staged auto insurance fraud (and premature aging) from happening to you:
- Be aware of your surroundings. Keep your eyes on the road, check your mirrors, and watch out for cars "pacing" (following) yours or stopping for no apparent reason. The "swoop and squat" is a scam commonly used. In this scenario, a car will suddenly swoop in front of you and immediately jam on the brakes. The result? A rear-end collision, inflated injury claims from the driver and passenger(s) involved, and unnecessary stress for you.
- Notify the authorities. Call the police, especially if you have concerns about the accident, other drivers, or passengers, or if someone has injuries (no matter how minor). Contacting the police, even if an officer can't show up to the accident scene, will give you an official record of the incident. In large cities, police officers are often unable to make it to the scene of a minor accident, but notifying the police can never hurt.
- Have the right equipment. A cell phone with a built-in camera is standard issue these days — and a lifesaver when it comes to auto collisions. Having a camera phone with you will allow you to document damages at the scene of an accident and call for the police and medical attention, if needed. (If you don't have a phone with a built-in digital camera, carry a disposable camera in your glove box.)
- Gather info. If you find yourself with a leading role in a staged accident, get as much information as possible from the people involved.
At the scene of the crime, you'll want to obtain the full names, addresses, and phone numbers of all parties involved (including all witnesses), as well as license plate numbers, vehicle models, and insurance information. You may also want to document where people were seated in the vehicles when the accident occurred. Basically, the more information you can provide to your insurance company, the better.
For example, some fraudsters pull a "jump in" during the claims process, claiming more passengers were in the car. (And, surprise, these fictitious passengers typically have injuries too.) If you have documentation to prove otherwise, you'll be able to refute that claim right away. So don't be shy. Make sure you talk to everyone present.
Accidents (and fraudulent claims) may be unexpected, but you can minimize your risks by staying prepared. For more tips on driving and vehicle safety and saving money on your car insurance,
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