Tips on How to Avoid Auto Insurance Fraud
Posted on December 28, 2009 - Filed Under Finances | Leave a Comment
Are you aware that an accident in the road can be planned? You can be a victim of auto insurance fraud. Auto insurance companies called a strategy "swoop and squat" wherein the two cars were actually working in tandem to cause a collision, and make it seem like your fault. The car that suddenly cuts, or swoops, into the lane is called the swoop car. The car that is hit is called the squat car.
Another strategy is called "panic stop". Again, the car planning to be hit is full of passengers. The car will pull into a lane in front of you, and then one of the passengers is assigned the task of watching for a moment of distraction. If you hit their car, every passenger would file for varying degrees to be counted in your car insurance rate.
Even if you are fully covered by your insurance, you still end up paying for this kind of fraud in your premiums. It is sad that even your auto insurance company had a difficulty in catching the scammers. However, the company can recover financial losses by increasing premiums.
How can you protect yourself from becoming victimized by an auto insurance fraud? Here are tips you can do to prevent your self from becoming a victim of a planned accident and not to compromise your car insurance.
The first one is this: Always keeps your eyes on the road. Do not talk on the phone while driving if it is not emergency. Do not talk to passengers at your back because it can cause you distraction from driving. Remember to finish all tasks before you will start driving like eating, putting make-up, tying a tie, etc.
The second tip is to sustain a safe following distance. Do not ever follow closely cars in front of you to avoid collision. The car in front of you could suddenly stop fro any reason; you will be ending up hitting that car and worst is you will be at-fault for the accident.
If you have low car insurance, make sure not to become a victim of this fraud. You will end up paying thousands of bills in repairing the damage of the vehicle and its passengers. So the third tip you should do is to keep an eye on the vehicles around you. You must be aware if there are cars behind you that are full of passengers. Observe if some of the passengers seem to be watching you.
The last tip to do is not to think that your affordable car insurance can totally protect you from fraud. The scammers are very much interested in getting money as much as they want from your insurance company. They might even get a lawyer to defend them so that they can file for the maximum amount possible.
It is a must that you have coverage. It is to protect yourself from a real accident. If you think that you can fight auto insurance fraud by not having coverage, you will not able to save your self from spending much if you meet a real accident.
About the Author: AutoQuoteNow.com can give you tips on how to fight auto insurance fraud. They are also giving information about car insurance from auto insurance companies. You can avail information about low car insurance.
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