Types of Car Insurance Fraud

It stands to reason that car insurance fraud scams are dangerous. People usually get injured, and sometimes die from trying to stage an accident to claim the insurance. Car insurance fraud is one of the most popular types of fraud in the area of car fraud. A vehicle can have some parts replaced and evidence destroyed if need be. Also being mobile and easily transferred, this makes a car almost ideal for the purposes of insurance fraud.

Let’s start with the well-known car insurance fraud that comes to be one of the most basic car scams. Two people organize an accident, where one driver has insurance and the other one has not. In this case they both can split the money that’s paid out by the single insurance company to pay for the damages. This scam may take a semi-regular basis, as long as it isn’t regular enough to get suspicious.

To perform another type of car insurance fraud only one driver is needed. Sometimes called the brake-slam – when a person drives in front of another car and then on purpose slams on their brakes so that they’ll be rear-ended by whoever is behind them. Since the damage is to the rear of their car, the driver who struck them is generally considered to be at fault as far as the insurance company is concerned. At present this scam is less common, as insurance companies have caught on and now investigate more thoroughly who is in fact at fault in any auto accident.

The third kind of car insurance fraud is usually called the swoop and squat. In this form of fraud, there are two criminal drivers, and an innocent victim which is in a third car. The first criminal driver is called the squat. He or she drives in front of an innocent person’s car. The swoop is a partner in the scheme, and he/she cuts off the squat. The driver of the squat slams on the brakes and gets rear ended by the victim. It comes to be an blameless accident, and the victim’s insurance pays out to the squat, who splits the money with the swoop.

The best way to avoid becoming a victim of car insurance fraud is to be alert and to be informed about these and other scams that people may try to pull.