For some countries, auto fraud scams have become such a great issue that dash cameras have become the norm. Now, the U.S. hasn’t reached a high enough level for such cameras to be the norm, but these scams are on the rise and continue to concern drivers in all states. Scammers will prey on anyone and everyone they can use for substantial compensation returns.
How about the stats?
Recent stats from the National Insurance Crime Bureau show an increase in auto fraud scams from 2007 to 2009 by 46%, with Florida leading the way as the number one state with reported auto fraud scams. This is increase is nearly four times of that reported in 1999. Either people are getting more desperate for money or major holes exist in the insurance system for finding and convicting these criminals.
Typical Auto Fraud Scams:
Scammers are using several tactics to prey on their victims, all of which require more than one scammer. A typical scenario requires two drivers looking to prey on another vehicle. With a four-lane road, one driver will get in front of the victim while the other pulls alongside the victim. The driver in front slams on their breaks, trapping the victim from veering to avoid the rear-end collision.
The scammer will use the wreck as a way to claim more compensation than needed. They typically overplay their injuries in hopes of recovering more compensation for injuries they haven’t sustained. Compensation then becomes pocketed income for the scammers, leaving the victim with higher insurance deductibles and bills.
Understanding These Scenarios:
First and foremost, know that these scams do occur and according to recent stats, they are occurring more frequently. You will be set up for an auto fraud scam, so look for possible red flags: is the person really hurt or are they overreacting? Did they call an ambulance? Did it seem as if they were working with someone else? Are they pushy about getting your insurance info?
In any case, make sure you call authorities to the scene for an official report of the wreck. If the other driver is claiming to be hurt, make sure they’re treated medical professionals before you leave the scene and receive a diagnosis. You want to make sure their claim is substantial.
If you believe you’ve been preyed upon, you can consult with an auto fraud attorney. Some personal injury attorneys specialize in this type of law and can help settle a matter that seems to be fraudulent. You don’t want to wait and consider whether you should meet with an attorney or not. Go ahead and meet with one – the least they will say is that you don’t have a claim. Plus, most attorneys provide free consultations.