Protect yourself from Auto Insurance Fraud

Auto Insurance Fraud is a mean by which a person claims money more that what he is entitled to from the insurance company. On the other hand it’s seen that insurance company also get involved in the fake transaction and deny the claim of victims who actually deserves. Auto insurance fraud statistics show that insurance fraud begun when insurance first started. Today with advancement of technology auto insurance fraud cases are also on rise and become hard to detect.

You need to educate yourself for fraud protection against auto insurance fraud scams. Let us look into few common scams which you need to be aware:

• Staged Accident: A scam driver stages an accident to collect money more than actually entitled for. He might quickly come in front of your vehicle and then bang on the brakes. You might not be able to control, and bang onto his vehicle thus causing damage. If might then blame you and will try to collect money for damage from you as well as from insurance company. Also he might try to show fake injuries and claim for medical treatment also. The staged accident to commit auto insurance fraud could involve one party or even two parties that work together against the victim.
• Adding Damage: Suppose an accident occurred whether it was staged or not, the driver may cause more damage to his vehicle later on and claim that it was damaged at the time of original accident.

Tips while Buying Insurance

• Very carefully select the insurance companies don’t get carried away with offers which you receive over phone calls or see an advertisement over the internet.
• Verify the terms and conditions very carefully and in case you come across something which is not being offered by any other company be very careful.
• Check for the validity of the insurance company by verifying it with the concerned authority.

Tips you need to follow after an accident

• Obtain the details of the other vehicle as well the details of the person to whom it belongs.
  
• Try to take photos of the damaged vehicles.
  
• Always call the police to accident scene and show them the damage of both vehicles so that the other party
• does not try to make more damage to their vehicle in order to claim more.
  
• Always keep note of the medical bills and repair bills if any related to the accident.
  
• You should never sign any blank claim form of the insurance.

Punishment and Penalties for involvement in auto insurance fraud

Auto Insurance Fraud Punishment for any staged accident involves prosecution in both criminal and civil side. Different states have different laws around it but fine and prison is definite. As a result one has to pay Auto Insurance Fraud Penalties. Your permanent record goes for a toss and it would become very difficult for the person to get job or loan in future.