How to Avoid Auto Insurance Scams


Dealing with a car crash is always a headache, regardless of whether all parties have their insurance in order or not. Insurance scams are actually the second most burdening financial crime committed in the United States – behind tax evasion, of course. If you ask any insurance experts, they’ll be more than happy to inform you that 20 percent of bodily injury claims resulting from car accidents are false.

So, what are the negative effects of a car insurance scam? They victimize the citizens who abide by the law by creating legal headaches, higher premiums, and a blemished driving record. With that being said, the insurance companies are also affected because they spend millions on claims that aren’t even real.

Now, to so you don’t get wrapped up in an auto insurance scam, we’ve compiled a list of the three most common one’s so you know to avoid them.

3 Common Auto Insurance Scams

  1. A Forced Rear Ending

    In a majority of jurisdictions, rear ending’s are at the fault of the rear driver, making them known as “crashes for cash.” So, as the driver, you need to be alert and if someone comes to cut you off in busy traffic, give yourself plenty of space to stop and don’t peddle push because you could give your car too much of a jolt.

  2. Fake Injury Claims

    It’s amazing what lengths people will go to in order to get some money. Fake injury claims can happen with any type of accident, they’re not just common with rear-endings. If you get into a fender bender, more often than not, the driver you hit will get out of their car and start talking about neck pain or whiplash. Then, they’ll go to the doctor and even sometimes pay the doctor off to get an injury report. So, how do you avoid this scam? You’ll know something is up if the driver acts fine and only mentions pain once the police show up. Therefore, you’ll want to file your own police report, even if the accident is minor, that way you’ll have a paper trail and your account of the accident.

  3. The Ghost Victim

    This is a hard scam to avoid if you don’t collect all the information you need once you’re in an accident. The ghost victim is a scenario when someone who wasn’t even in the car files an injury claim. The best way to avoid this scam is to gather the license plate, names of people in the car (and number of passengers), and the driver’s license number. Then, if you don’t recognize the name on the insurance claim that was filed, you have the paper trail that you need.

For more information on insurance be sure to contact an agent with superior knowledge in your area, for help in the Colorado area please call (720) 283-1722 or fill out our quick quote form.