Finding the right auto insurance policy can be complicated at times. There are so many variables to consider. Criminals know this fact as well, which is why they are always looking for opportunities to cause trouble. Watch for these common scams while you research car insurance policies.
Insurance policies help protect you against possible risks and threats. However, criminals are using creative strategies to cause harm. Insurance scams are becoming a frequent occurrence. Here’s a look at some common insurance scams to watch out for.
Fraudulent Insurance Agents
Insurance carriers and agents strive to help you find coverage at a rate that aligns with your finances. Research shows that predators are lurking. Fraudulent agents may seek to collect premiums on non-existing policies. They will offer you policies with fake protection. The National Association of Insurance Commissioners recommends that you contact your state’s insurance department before accepting the terms of a policy with a company you are not familiar with.
If the insurer doesn’t have any contact information, that is a red flag. Offering premiums for coverage that are substantially lower than market value is another warning sign. You should never feel pressured into purchasing a policy and try to have a face-to-face meeting with your agent before purchasing coverage.
Cyber Threats
Millions of Americans lose money every year due to a phone scam. At some point, more than 30 percent of citizens will fall prey to one of those scams. Computer hackers will certainly look at acquiring your phone number or email address. Never send personal information through an email, and make sure that you can trust the person on the other end of your phone call before revealing any personal information.
Fake Accidents
You should be alert at all times when you are operating a vehicle. Inattentive drivers are often sabotaged by dishonest drivers who set up accidents to make it seem like they were at fault. If the person scamming you has one or more witnesses, you may be helpless if they file a claim.
Common fraudulent accidents include:
Side Swipe
Pay attention to intersections that have multiple turn lanes. A criminal may anticipate you drifting too wide from your inside lane. The momentum can cause them to swipe your vehicle and cause a crash.
Drive Down
A drive down often occurs when you are trying to make a turn without the right of way or while you are entering traffic. Another driver might gesture you to join the traffic. However, they speed up and hit your car once you move forward. Once law enforcement arrives, they deny ever telling you to merge. This also occurs if you’re moving from a parked position. They can say that the coast wasn’t clear for you, especially if you have witnesses.
Panic Stops
Panic stops occur when a vehicle in front of you puts on the brakes when you aren’t expecting it. If you aren’t paying attention, you will hit the end of their vehicle. Swoops are also common. Swoops occur when a driver swerves in front, causing the driver in front of you to apply the brakes. There’s a good chance you will hit the rear end of the vehicle in front of you, and the driver of the swoop vehicle simply drives off.
False Claims
Common false claims include:
Exaggeration
Criminals may overstate the actual damage caused by a crash. It’s possible that they simply hit a mailbox or fence, but they insist the damage happened because of a severe accident.
Adding a Passenger
Criminals may add a fake passenger to their claim. In most cases, the fake passenger agrees to be in the car at the time of the accident because they want a payday. They most likely weren’t close to the scene at all.
Car insurance is designed to protect you in most situations. However, criminals will always look to take advantage of vulnerable situations. These tips should help you stay safe on the road and avoid being targeted. If you have any questions about your auto insurance policy, contact our insurance experts here at C.V. Mason Insurance Agency, and we will assist you.
