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3 Types of Auto Insurance Frauds and How You Can Avoid Them

December 30, 2015 by  
Filed under Blog

Auto Insurance FraudsGetting into an accident is definitely a situation you wouldn’t want to imagine yourself in. What can be worse than this? How about knowing that the accident was planned, and that you have been duped into auto insurance scam?

If the recent statistics are to go by, more than 20% of the physical injury claims and 10% of the auto insurance claims are spurious.

Insurance frauds are taking place everywhere, in every state. One of the most common types of insurance frauds is auto insurance frauds where the offender gets away quite easily without even the hint of a fraud occurrence.

Listed below are the 3 most common types of auto insurance frauds and how you can evade them:

1. The Phantom Victim

You know you’re in big trouble when a car accident takes place and the people who weren’t even inside the car file a personal injury claim with your insurance company. Popularly known as the ‘Phantom Victim’, the scammer attempts to file a claim for additional passengers in the car, claiming that they have suffered severe injuries, even if there was no one present. Such a situation usually arises post a staged accident or cash ploy. The only way to prevent this scam is following the driver for weeks. However, such cases can be evaded by getting note of the number of passengers in the car apart from recording the driver’s contact information and license number.

2. Fake Injury Claims

Such claims can be made in any types of accidents. For instance, you get into a minor automobile accident and the other party reports a whiplash or back pain. If the other part expresses the need to get hospitalized and files an insurance claim with your insurance company to cover the expense, you have every reason to be suspicious. Such false scams are hard to discover because whiplash and phantom pains are difficult to detect with X-rays. So, fraudsters often bribe the doctors, chiropractors and physiotherapists to show shady reports to the insurance company. One way to spot such fake claims is to take notice of the other party’s behavior. If they act and walk fine until the police show up, and start moaning only after, know that a scam is underway. To avoid this, immediately file a police complaint for a minor accident. This will leave lesser chances for the insurance company to believe the fake injury claims.

3. A Bad Samaritan

Let’s assume you’ve been in a car accident, and are now standing on the side of the road waiting for police or tow help. Even though you’ve been too late to avoid the accident, know that the scam is still about to play out. There is a great probability that you get approached by a con that got your number from his secret sources and poses himself as a neutral insurance official. Using his highly-polished persuading skills, he is trying to convince you to obtain the services of a health clinic for your injuries, or recommending you a certain car body shop. If you’ve never heard of the particular mechanic or clinic, you’re definitely in for a scam. The best way to evade this situation is by avoiding to divulge any personal information to anyone other than your, and the other party’s insurance company.

Seeking assistance for fraudulent insurance claims? You have come to the right spot. At National SIU, we provide auto insurance fraud investigations, workers’ compensation fraud surveillance and other services through licensed private investigators. Start an investigation today or give us a call at 800-960-6748.


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