This country has faced many fraud problems and is still unable to come out of it, but Auto Insurance Fraud is today's biggest fraud problem reported. Staged auto accidents has become the most popular and sophisticated scam for the criminals. Caught into such a scam can make you and your families pay with their lives as they involve many participants at a time in it. So in this post I am going to discuss some most happening auto insurance fraud scams and also report prevention from them.
i) Swoop and Squat: This scam normally involves three vehicles. Two of them are driven by the criminals while the third is driven by the victim. The first criminal car is known as 'squat' which is driven by placing the car in front of the second criminal car known as the 'swoop' vehicle. The swoop vehicle then intentionally increases speed and cuts off the squat vehicle causing the driver to apply break and come to a sudden stop. Before the victim can realize and react on the situation, his vehicle crashes on the back of the squat vehicle. Meantime the swoop vehicle runs away and never gets traced again. Now the victim is caught responsible for this accident, and even if he informs police that the actual accident is done by swoop driver, that individual is never caught, hence the victim lands up paying for all the damages.
ii) Side Swipe: This always happens in busy intersections of roads and places with dual left hand turning lanes. The criminal intentionally keeps his vehicle on the outer left turn of the lane and when the targeted victim tries to turn, the criminal immediately swipes by the other vehicle. The busy traffic gets the victim into trap and unnecessary debate. At last he is held responsible for the accident and damage.
iii) Panic Stop: In this type of scam the criminal driver drives a vehicle loaded with passengers and placing the car right in front of the target vehicle. A passenger is instructed beforehand to keep a constant notice on the victim driver whether he takes his eyes off from the road to either receive a call or for changing car fm station. Noticing any such signal the criminal driver suddenly applies car break forcing the victim to cause a sure accident and hence land up compensating for the damages and injuries incurred by the passengers.
Like these, many auto scams are ruling the road, targeting innocent people and making money out of them. Do we actually have any prevention from these? Yes we have, and the only prevention is to be extremely observant and careful while driving and keeping a safe distance from the vehicle ahead. Obeying traffic rule and driving safe and smart can only prevent us from becoming the next auto insurance fraud target victim. So, keep the above points in mind and save yourself from getting trapped into it.