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Car Insurance Scams Cost Us All

Car insurance Fraud is far from a victimless crime. There are the obvious victims: those people injured or even killed by a \"staged accident.\" In a \"staged accident,\" the perpetrator deliberately smashes into the victim's car, in hopes of cashing in on that person's car insurance. It is easy to see how this could lead to serious injuries or fatalities to innocent people.

The money to pay these fraudulent claims has to come from somewhere, and that \"somewhere\" is the typical American driver. In New York State, this adds an average of $200 to every driver's yearly insurance premiums. Senator Schumer's office estimates the total yearly cost to be 1 billion dollars for New Yorkers alone.

How do we know if an accident is \"staged\"? Educate yourself before it happens, and write everything down if it does. By understanding the typical scenarios, and paying close attention at the scene of an accident, it is often easy to spot a scam.

There are a few types of accidents scammers use so often that they have slang of their own. The \"Swoop and Squat,\" is a common scam that involves two cars working together, forcing a third car into a rear end accident. One con artist \"swoops\" a car in front of the innocent driver, and then slows down. By keeping the car very close in front of the victim, it insures that the victim does not have adequate braking time to prevent an accident. And swerving into another lane is not an option for the victim either, as the second car effectively boxes it in by driving right next to it. When the car in front of the victim slams on its brakes, the victim has no option but to smash into the car in front.

The \"T-Bone\" accident is particularly scary because it is so dangerous. As victim's car goes through an intersection, the perpetrator runs a red light or stop sign and deliberately smashes into them. Victims can be seriously injured or killed from this type of accident, as many cars have no side airbags for protection. Law-abiding drivers may also find that the accident is their \"fault\" because the scammers accomplishes play the part of witnesses. They lie to the authorities, saying that it was really the innocent driver who blasted through the stop sign or red light.

Even if the accident is legitimate, that still does not mean that there isn't a car insurance scam waiting to happen. Unscrupulous repair shops can inflate the cost of repair, claiming damage that did not occur, or exaggerating the seriousness of the damage. They may even declare the car \"totaled,\" which means it would cost more to fix it than it is worth, and then sell the car to a chop shop for parts, or to be put back on the road with fake identification numbers and paperwork.

How do we protect ourselves from car insurance cons? Defensive driving is the first and best defense. If you are in an accident, be observant and aware of the other drivers, passengers, and witnesses. Fully documenting the accident is vital: Take pictures and collect information from everyone involved. This helps authorities catch car insurance cons, and gives you full photographic detail of the damage done to your car.

An honest repairman is any driver's best friend. If you don't have one, your insurance company may be able to give you a recommendation. Comparing estimates at two different shops can help. Even at the most honest repair shops, however, it is in your best interests to get an itemized description of all work done. If the descriptions don't make sense it is important to ask for clarification.

Even victims who survive car insurance scams unscathed can feel helpless and angry. The best defense for keeping insurance costs low, your driving record clean, and the roads a little safer is simple: Street smarts and good documentation.

By: Susan Tanner

To find out exactly how I got car insurance quotes online, visit my website about auto insurance

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