Get educated about insurance scams
These days you have to be pretty cautious and know who to trust. Every email, phone call or interaction could potentially be a scam looking to separate you from your money. In fact, the Coalition Against Insurance Fraud, estimates that insurance fraud steals at least $308.6 billion from American consumers every year. Auto insurance fraud is involved in about 10% of property-casualty insurance losses.[1]
Insurance can be confusing and the times when you’ve had an accident or need a repair are often when you’re shaken up and less likely to be thinking clearly. Thus it’s good to be aware of some of the major insurance scams out there, so you know when to ask follow-up questions and when to steer clear.
What to do if you think you’ve been scammed
If you believe you are the victim or witness of car insurance fraud, report it right away. You can call or report the fraud online to the National Insurance Crime Bureau (NICB).[6] You will need to report as many details as you can about the date and location the fraud occurred, the vehicles and people involved and a description of the fraudulent activity that occurred.
Insurance fraud costs billions each year. From false claims to hard fraud, be on the lookout for some of the common types of car insurance fraud. One of the best ways to avoid being scammed is to always be vigilant. Give space to other drivers on the road, do your research on the best insurance companies and repair shops and get everything you can in writing.