How to Avoid Auto Insurance Fraud

 In Auto Insurance

car crashThousands of Americans fall victim to insurance fraud every year, and the numbers keep climbing. While there are scams and fraudulent crimes committed in every facet of insurance, one of the more common areas of insurance fraud is auto insurance.

Auto insurance fraud by criminals has ensnared and victimized thousands of Americans, but you do not have to be one of them.  By understanding a few basic things about where auto insurance scammers can strike and a few tips on how to avoid falling victim to auto insurance fraud, you will be able to protect yourself from would-be criminals.

Frist, it is important to understand at what stage cons are likely to be attempted by criminals.  There are three primary phases when scams are likely to be enacted and you need to know the tips and tricks that will help you to avoid trouble in all three areas.

1.  When purchasing auto insurance:

  • Avoid door-to-door insurance salesmen or other unsolicited insurance offers
  • Remember that if something sounds too good to be true, it might just be false
  • Check credentials of all insurance salesmen before signing a policy
  • Never give out personal information until the credentials of the salesmen check out

2.  After an accident:


  • Document everything to avoid fraudulent claims by other drivers involved
  • Exchange insurance information. If more comfortable, wait for police to arrive and direct the proceedings
  • Distrust third party persons who direct you to see a certain doctor or attorney
  • Never sign insurance claims before they have been filled out

 3.  While driving:

  • Always be on guard for a staged accident.  People who pull out in front of you and force you to follow too closely may hit their brakes and force an accident
  • Yield to all pedestrians, even those who are j-walking.  A common form of auto insurance fraud is for criminals to jump in front of slow-moving vehicles and claim medical liability money

photo credit: Tobyotter via photo pin cc

Recommended Posts