5 MOST COMMON CAR INSURANCE SCAM SCHEMES

Vehicle insurance frauds occur in increasing frequency today due to financial problems or simply to file claims to companies to be able to get financial advantage. But this is not always the case because chances are these businesses are now on guard about car insurance frauds.

The most common of these is car theft or report of cars being stolen in public places or even in their own garage. Some may resort to having an accomplice just to achieve success in such crimes. After years of dealing with this kind of fallacy  people in insurance business are now aware of what to do if ever this problem occur.

The second one is the staged accident method wherein one arranges his vehicle to seem to appear as the victim but in truth the owner intentionally collided it with another vehicle with the aggrieved party as the perpetrator. In this kind of fraud, the owner of the car who crashed first will file the claim.

The third one is often made by auto repair shops just to have a major portion of the client’s financial claims. They often collaborate with the insurance company to deceive the car’s owner of repairs done without being actually made and overcharging exorbitant fees. In the end, almost all of the money will go directly to the repair shop which usually leaves the owner with a hole in his pocket. 

The fourth one is the intentional hit-and-run accidents which usually appears fake if given further attention. They aim to file reports that are half-truth or a big lie in the first place. In this type of fraud, damage is evident in the vehicle but the claimant will do almost anything just to prove it to be true. Insurance companies are now aware of this problem which is one of the most common insurance scam in vehicles.

Lastly, the fifth one is a fire accident that can destroy a vehicle in just a few minutes. It can be made to appear as arson or done by a madman but if one looks deeper into it the victim is basically the suspect who wants to lay claim on his car insurance benefits. Insurance frauds are noted to be one of the common scams existing today. If given sound advice and follow the right intuition, both the company and the car owner will benefit from each other without resorting to such fraudulent acts.

Author bio: +Juree Goode loves to eat and travel. She mainly loves the outdoors and has a thing for rough roads. During her free time, she watches Australian off road racing and Dakkar when it’s in season. Her favorite past time is to write whatever runs through her head, which most of the time filled with images of the next 4wd ute, or pickup truck she's eyeing on.