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How Does Car Accident Fraud Impact What You Pay For Auto Insurance

Car accident fraud isn’t something that the insurance companies make up in order to justify higher premiums. It is a real thing. In fact, it is such a problem that Los Angeles County recently received a $6.9 million grant in order to crack down on the number of staged car crashes and fraudulent insurance claims since it has been recently been dubbed the fake car accident capital of California and possibly even the country.

When it comes to fake car accidents, most of us think of a staged rear end accident involving a few individuals looking to make a few extra bucks or get a new car, car accident fraud is much more sophisticated than that. There are car insurance fraud rings that include the perpetrators of the accidents, crooked doctors diagnosing fake injuries, fake eye witnesses testifying to incorrect details and even unethical personal injury lawyers who fight the fake claims in court. These losses ultimately get passed down to consumers who purchase insurance policies and pay higher premiums for coverage.

Staged Car Accidents

The term car accident fraud refers to the actual physical event where one or more vehicles collides with another vehicle or other property and causes damage to the car, the property and/or the operator of the vehicle. Auto insurance provides financial protection to people who operative vehicles in the event they are involved in a car accident by paying for certain expenses such as vehicle repair or replacement, property repair or replacement and certain medical coverages both at the time of the accident and during a specified follow up period. A staged car accident requires willing participants to engage in certain acts that cause an accident in order to procure funds through the filing of false insurance claims.

If You Suspect Fraud

If you have been involved in an accident, real of fraudulent, there are some things you need to do to protect yourself and your insurance company from paying out more than what is required.

  • First, document everything. Take pictures of the damage, the license plates of both license plates, photo IDs, insurance cards and the driver themselves. Pictures are worth a thousand words.
  • Write down driver’s license numbers, car insurance information, car details like year, make and model, the driver’s telephone number and address, details about how the accident occurred and the tag number. If possible, have the police also come out and document the accident. If there are witnesses and/or other passengers in the car, collect their names, phone numbers, and addresses as well.
  • Never admit guilt or take any offers to settle on site. It is important that the accident goes through the proper channels and is reported to your insurance company. All financial transactions should be handled by your insurer. If there are any requests for compensation at the site of the accident, report that to your insurer as well.
  • Car accidents are stressful enough without the additional stress of worrying that you have been a victim of fraud. For more information on how to protect yourself, contact your insurance agent today. If you don’t have auto insurance, get a free auto insurance quote Centreville VA from the best auto insurance Centreville VA.

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