Auto insurance fraud is all too widespread and raises the cost of insurance for drivers in areas like Florida and New York. The average American family pays an additional $700 a year in higher insurance rates and premiums as a result of the problem’s widespread nature, which projected to cost the insurance industry roughly $40 billion annually. It’s crucial to keep up with newest trends because fraudsters are constantly evolving and inventing new ways to scam drivers. These are a few of the most common car insurance scams and how to avoid them by installing a dash camera in your vehicle.
Scam 1: Staged accidents
How the scam works: In this scam, the fraudster causes an accident in order to make false claims. Wave-and-hit and forceful braking (or panic stops) are two examples of these staged accidents. In urban areas, staged incidents are more common, according to the National Insurance Crime Bureau. Where there is an expectation of greater insurance, they frequently target wealthy neighborhoods as well as newer commercial automobiles.
How to stay safe: Dash cameras are your best defense against staged auto accidents. Wide-angle dash camera with Full HD or higher resolutions are best for getting crystal-clear footage. Dual-channel systems are preferable because many cameras offer more thorough coverage. Consider the Vezo 360 dash cam front and rear, which has an interior camera that can swivel to record accidents and interactions on the driver’s side to assure full coverage. The Vezo 360 will therefore protect you even if the other driver makes threatening comments to you or the driver-side glass.
Scam 2: Jump-in passenger
How the scam works: In this scam, a dishonest passenger jumps on the vehicle of the driver and makes injury claims while not being present at the time of the collision.
How to stay safe: It’s your word vs. theirs when there are no cops or witnesses. The greatest action to take after an accident is to gather accurate information. Use your smartphone to take images. If at all possible, get the names and phone numbers of all involved parties, including any on-site witnesses. You can call the police to submit a report; you can then file a claim with the police report’s file number attached. Moreover, look around for any security cameras that might have captured the accident scene from different perspectives.
Scam 3: Bandit tow truck
How the scam works: Unsolicited tow truck operators wait to prey on drivers who have been in accidents. They provide a towing service but later demand a huge cost. Once you’ve recovered from the collision, you give your permission to towed to the repair facility that the tow truck driver suggests. For towing your car to the repair shop, the tow truck driver is compensated. The repair shop will overcharge you and your insurer for the necessary repairs while skipping the less expensive ones.
How to stay safe: If you have a Vezo 360, you should also direct your dash camera at the tow truck driver so that you may record any conversations that take place. Also, leave your dash camera on so that you have a video in case something happens to your car. Don’t switch it off simply because your car is secure on the back of the tow truck.
Scam 4: Exaggerated injuries and damage
How the scam works: This scam involves exaggerating the extent of a car’s damages following a collision in order to obtain a larger insurance payment. Fraudsters frequently make claims for ailments that are hard to detect, such as whiplash or other internal injuries.
How to stay safe: Unfortunately, it’s nearly impossible to defend yourself against inflated injuries. Yet, you can still use your phone to capture images and gather accurate data at the site of an accident. It is always preferable to call the police for emergency medical aid if you believe the other party is hurt.
Scam 5: Fraudulent car repairs
How the scam works: In this fraud, repair businesses overcharge for unnecessary or fake repairs or use second-hand or fake parts in place of brand-new ones. Unreliable mechanics target folks who are unfamiliar with what’s going on under a car’s hood. There are various cases where repair costs inflated, such as when used components utilized but new parts charge to the insurance company, or when work that was never done is merely billed to the insurance company. A classic car repair insurance fraud is the airbag repair scheme.
How to stay safe: The easiest way to prevent falling victim to this scam is to choose a trustworthy repair shop, check references, and have your automobile examined when you pick it up from the shop.
Are there any particular drivers that are targeted by auto insurance scams more frequently?
Anyone can be a victim of a car insurance scam, but some groups may be more at risk than others because of their lack of familiarity with the insurance industry. Groups that might address more frequently include:
- Elderly individuals: Since they may not be as comfortable with modern technologies or because they may be more trusting of people who seem competent or professional, older people may be more likely to fall for scams.
- Immigrants: Immigrants may be more susceptible to victimization because they may not be familiar with the insurance system in their new country or because they may be more inclined to trust people who appear to be from their own community.
- New drivers: New drivers might not be familiar with the insurance system and might not be able to spot fraud.
It’s crucial to keep in mind that anyone, regardless of age, income, or degree of expertise, can become a victim of a vehicle insurance scam. The strongest defense against car insurance fraud is knowledge and self-preservation.
Can a dash camera combat auto insurance fraud?
Yes, it can!
By offering accurate proof of what occurred during an accident, a dash cam can help shield you from these scams. The dash camera video can help disprove unfounded allegations and offer reliable visual proof to back up your claim. Dash cameras capture the view from the front, back, or interior of a vehicle and can use to establish details about the collision, including the speed of the involved vehicles, the actions of the drivers, and the road and weather conditions. You may avoid falling victim to auto insurance fraud by taking these precautions.
Should you inform your insurance company that you have a dash camera?
Even while it’s not needed, it’s a good idea to check with your insurance provider to see if they have any particular guidelines or whether the footage would help with a claim.
You might find that having the footage is helpful in resolving the claim and identifying who was at fault if you decide to utilize a dash camera. You might decide to voluntarily share the video with your insurance provider in this situation.
To avoid falling victim to car insurance scams, it’s important to always be vigilant and cautious while driving. Installing Vezo 360 battery powered dash cam can provide valuable evidence and help protect you from fraudulent claims. It’s also important to do your research and verify the legitimacy of insurance companies before purchasing a policy.