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Auto Insurance Fraud Means Dangerous Roads And Higher Premiums 
By: Susan Tanner
Car insurance fraud is dangerous and expensive business. In order to get money from a victim's car insurance, unscrupulous drivers \"stage\" collisions with innocent drivers. Injuries or fatalities often occur when people are victims of these \"staged accidents.\"
Whether or not anyone is physically hurt, there are serious and substantial costs associated with this sort of scam. The office of New York Senator Charles Schumer estimates that car insurance fraud like this costs New Yorkers 1 billion dollars annually - or about $200 per driver, per year - in increased insurance rates. The insurance companies don't absorb the costs of these fraudulent claims; they simply pass these costs on to the consumer.
How does this happen? Well, auto insurance fraud takes many forms. The best way to protect yourself is to be skeptical when any accident occurs, and to watch out for common con artist schemes. You should also know how to collect information at the scene of an accident that can protect you against cons.
The \"Scoop and Squat\" is easy to spot and commonly used. Two scammers in separate cars box in a victim and force a rear-end accident. They do this by driving closely in front and directly to the side of the innocent driver. The car in front slams on its brakes, leaving the victim not enough room to stop, and no exit to the other lane. The victim is powerless to stop the accident.
Another common con used in car insurance scams is the \"T-Bone.\" This highly dangerous operation involves intentionally ramming into the side of a car in an intersection, as it passes a light or stop sign. The con artist is aided by confederate witnesses who all claim that the victim ran the light or sign. This type of hit often results in injuries, as many cars do not have side airbags and the attacking car can make direct contact with the driver or passenger.
Even accidents that are not staged often carry potential for fraud at the repair shop. Dishonest repair shops can bill insurance companies at higher rates, or even for unneeded repairs. They can falsely deem a car destroyed, and turn around and sell it for parts. Some repair shops may even re-christen the \"totaled\" car with new paperwork and numbers, and put it back in operation.
What, if anything, can we do to protect ourselves from auto insurance scammers? Being a careful driver is the best way. But if you are in an accident, it is important to keep a close and careful eye on the other people involved. Get all their information, even the passengers. If any of these people engaged in insurance scams in the past, your records may help catch them. Taking pictures of the accident scene is helpful too, as it allows the authorities to have a better understanding of what actually happened.
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.
Car insurance scams can make all of us feel angry and helpless. But with a little street smarts and good documentation, you can protect yourself against many insurance fraud schemes and keep your own record clean while helping to combat the skyrocketing costs of auto insurance.
Article Source: http://www.uberarticles.com/articles
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