For making insurance rates expensive.
One out of every three car crashes involving bodily injury is fraudulent.
There are many different types of insurance: auto, home, medical, life, etc. They all have one thing in common: They are susceptible to fraud. Insurance fraud has been around since the start of insurance. Even as far back as ancient Greece, people would scam “insurers” by purposefully sinking or hiding a ship to claim the insurance bounty.
So what’s the big deal? Fraudulent insurance scams raise our rates and make us victims. I agree with Ned Flanders, who thinks insurance is a form of gambling. Not to mention that you pay premiums your whole life and when you finally need it, the insurance companies haggle you on the payout. Either way you look at it, it’s a dirty business. The best medicine is not to drive!
Here are the three popular car insurance scams to avoid:
• The Staged Rear-End Accident. A scammer slams on the breaks so you rear-end them. Along with collecting money for the damage, they will fake injury. Lesson learned: Never follow too closely.
• Adding Damage. A fraudulent driver adds more damage after an accident occurs to get a bigger settlement. Lesson learned: Be sure to take pictures at the scene if you are at fault.
• The Phony Wave. This is the guy who waves you on, but then crashes into you, after which he will deny waving you on to collect the insurance money. Lesson learned: Always use your best judgment in traffic.
Good luck out there!