4 common auto insurance fraud schemes Dishonest people across the country are perpetrating fraud that endangers others and drives up the cost of auto insurance for everyone. Among the worst metropolitan areas: Los Angeles. Among the worst states: California and Texas, according to the National Insurance Crime Bureau. Here are some of the most common frauds and what you can do to help avoid becoming a victim. Counterfeit air bags. If you’re in an accident and an air bag deploys, it must be replaced professionally. Because you can’t see it, crooked repair shops often replace it with a cheap knockoff, or not at all. Defense: Work with a trusted, reputable mechanic. Check out Farmers Circle of Dependency Program. Staged accidents. The most common are: Swoop and squat. A vehicle passes you, pulls in front and slams on the brakes, forcing you to hit it. Drive down. You’re waiting to turn left, and the fraudster waves you through the intersection, then proceeds just in time to force a collision. Wave down. One fraudster waves to you that it’s safe to pull out of a parking spot or parking lot, and another crashes into you. Defense: If you’re involved in an accident, take pictures of all vehicles, all passengers and other drivers. If your cellphone isn’t photo-capable, carry an inexpensive disposable camera for emergencies. Windshield replacement rip-offs. A stone causes a chip or crack in your vehicle’s windshield and a stranger approaches you in a parking lot. He says he’s with a vehicle glass company and offers to install a new windshield for free; all he needs is your insurance information. Watch out! Two bad things can happen: The windshield replacement may be poor quality and, with your insurance information, the fraudster may submit false claims, which can increase your premium. Defense: Simply say “thanks, but no thanks.” If you need windshield repair, call me; I’ll put you in touch with FASGLAS®, Farmers Glass Program, a national program with over 12,000 participating independently owned and operated glass shops. Towing scams. You’re stranded at the side of the highway, and a tow truck just happens by and stops. What a relief — right? Maybe not. It could be what’s sometimes called a “bandit” tow truck, and you could end up with an enormous bill. Defense. Wait for the tow truck you called, and get a cost estimate and towing destination in writing. Better yet, add roadside assistance to your auto insurance coverage. The cost of adding it is low, and you’re sure to get safe, reliable towing. You can’t predict or prevent every fraud, but you can be prepared. The more you know about insurance the better you can plan for the unexpected. Let’s get together. Source: Bankrate, 04/02/13 By Michael Estrin
Posted on: Fri, 19 Jul 2013 16:04:21 +0000
Trending Topics
Recently Viewed Topics
© 2015