Accurately detecting an insurance fraud might be one of the most difficult problems buyers are likely to experience. After all, it’s a crime intended to be subtle, thus not easily detectable. In New York City alone, Bank Rate says that 1 out 3 car insurance claims are fraudulent. The cost of this amounts to billions of dollars every year. So while insurance fraud is not a violent crime, it’s lucrative. Luckily, there are ways to avoid being scammed.
- Don’t fall into a staged car accident.
In an argument about who’ll pay who after a car accident, rear end collisions are almost always seen to be at fault. If you’re dragged into situations such as Swoop and Squat and Panic Stop, then you’ll most probably have to pay through your insurance company. To avoid such situations, be alert. Don’t take your eyes off the road and obey the speed limit. It will also help if you put a safe distance from the car in front of you. Follow the 4-second rule. Also, be defensive when the other driver tries to force you into paying.
- Know your agent.
It does not often happen nowadays because people are more wary of what they buy, but there are still instances when consumers are victimized by dishonest agents. Of course, they’ll only know they’ve been cheated on when they claim the coverage. It’s a general rule to only deal with licensed agents. Ask proof of this when you’re talking to one.
Also, make sure that you get a copy of the policy you’ve chosen from the agent; complete with declarations that outline your coverage and limitations. If a copy is not given to you, you have the right to question the agent. To know more about car insurance and policies, click here.
- Avoid towing scams.
When you encounter trouble with your car in the middle of the road, and suddenly, a tow truck appears to help you, it’s easy to fall into the “kind” act. However, be wary as this might be a scam. Before you agree to accept the help, ask for the official invoice. Also, don’t give your personal information to avoid identity theft and the like. If you suspect something, call the police immediately.
- Pay only for the services you’ve received.
If you sent your car for repair, you could ask for the list of services which the insurance covers. Review the list to ensure that you are not billed for what is covered by your benefits. If you feel that there are discrepancies, you can contact and consult your insurer.
Moreover, do not make cash payment for a premium. Send a money order to the insurance company directly and not to the agent. When making payments, make sure you ask for the receipt. It’s always better to be safe than sorry.
- Be cautious of fake injury claims.
You may or may not have experienced having to submit to medical care after a car accident. This is okay, of course, but only if you need it. There are times when the bill is doubled, and diagnosis is falsified so that the insurance company will pay more than they should. To avoid this, take note of your ailments after the accident.