Top Four Tips to Protect Yourself from Auto Insurance Fraud.

According to statistics from the Coalition Against Insurance Fraud, 41 out of 50 US states have fraud bureaus to investigate on suspected insurance schemes.

As per law, insurance fraud is considered as a crime in most of the US states.

Despite strict supervision, the number of auto insurance fraud cases is constantly on the rise across the nation in recent years.

As a consumer, you can be a victim of insurance frauds in many ways.

If you want to protect yourself against auto insurance frauds, you should take some precautions, and know how to behave in the event of an accident. Read this article to know some useful tips on handling auto insurance frauds.

How to Protect Against Auto Insurance Fraud

When it comes to protecting yourself against car insurance frauds, you have a lot of things to do before buying car insurance, when driving a car, and after you meet with an accident. Following are the four useful tips you must know about.

  1. Know your insurer – When shopping for auto insurance, you should carefully check the background and reputation of a company. Don’t settle for buying a policy just because it is offering huge discount on auto insurance. Check with your state’s insurance department to verify whether the insurer is licensed and have good reputation as a vendor. Another good idea is to call the BBB to know the company’s current rating. Acclaimed insurance companies generally don’t cheat their customers. Buying from reputable insurance company keeps you away from the risk of getting into traps.
  2. Protect insurance documents – It is very important to safeguard your insurance identification number. If criminals or scam artists somehow get the number, they may use it to make false claims. Moreover, all essential documents, such as policy papers should be kept in a safe place as well.
  3. Keep safe distance when driving – To avoid being a victim of a staged accident, you should always keep a safe distance from other cars on the road when driving. Be aware of cars that are closely following you or suddenly cutting off towards your car. In situations like these, you should park your car in a safe place, such as in the nearest police station.
  4. Report your insurer after accident – You should inform your insurance company about an accident immediately after it happens. Some companies may give you a spot offer for cash settlement. Don’t accept such an offer. You should also call the police and try to have them visit the spot. It is also important to get phone numbers and address of the people in other car, and witnesses on the spot.

Another good idea is to take pictures or videos of the damaged car and the accident spot after an accident. These pictures or videos may stand as a proof against false claims by others.


About the author: Aliya Martin is a financial consultant with wide experience in the insurance domain. As a writer and blogger, she loves to provide information and opinions on various types of insurance and these days, she is working on car insurance. To know more about discount auto insurance, visit our site.

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