Fraudulent Auto Claims: What to Do and How to Recognize If You Are a Victim
By Kathleen Murray, Capstone Brokerage Client Advocate, July 18, 2017
Fraudulent auto claims are on the rise and will continue to escalate. The perpetrators are just as dangerous as a thief with a gun. WHY? Because a vehicle is a weapon and could injure or kill the driver and passengers in the vehicle.
Perhaps you have experienced an auto collision and were not aware that the accident was staged and pre-planned by an organized ring. At first, the auto collision that you experienced seems like an “ordinary” accident. When an accident happens, it is easy to be unaware that the accident could have been pre-planned or that the driver and passengers are part of an organized ring because you need to get over the initial emotion of assuming the collision is your fault. Being prepared involves being aware of the red flags that could signal a fraudulent auto claim and what to do when a collision happens to you.
Not every claim involves fraud, however, there are red flags that could indicate a claim is a suspicious incident. While it is not possible to put an exact dollar value on the amount of auto insurance fraud, inflated, fraudulent claims are becoming more common.
One frequent scenario in a fraudulent claim is the “swoop and swat”, where two drivers work in tandem to trap an innocent motorist. One slams on the brakes in front of the intended vehicle, and the other blocks the vehicle in the other lane, so victim’s vehicle cannot swerve to avoid the wreck. Instead, the trapped vehicle rear-ends the vehicle in front, which is filled with people. Everyone involved, including the trapped vehicle, will claim bodily, soft tissue injury which will result in long term investigation and delay settlement of the claim.
In Case of An Accident, here’s what to do:
1. Report the accident to the police or highway patrol. In Nevada, a collision event report will be given by the Police Department or the Highway Patrol. The report will have the officer’s name, badge number and office location where the report will be filed and available to be obtained within approximately 15 days
2. Call Emergency Medical Assistance if needed
3 Report the following information immediately to your insurer and agent:
• Time and Place
• Circumstances of the accident; Provide a brief description while the events are fresh in your thoughts
• Names, addresses, driver license, insurance card and contact information of others involved. Pictures can be taken on a cell phone.
• Names, addresses and contact information of any witnesses
• License plate numbers of the vehicles involved
• TAKE PICTURES of damages to your vehicle and other vehicles involved including the license plates
• Complete a Report of Accident Form. If your insurer does not have an Incident Report of Accident form check with your insurance agent to send this form. A report of accident form should be kept in all vehicles always
• If your vehicle is not equipped with surveillance cameras; disposable cameras are a wise and economic investment to have in both commercial and personal vehicles
• DO NOT sign any statements from the other driver at the accident scene. Many times, the other driver will want an admission statement, with the stated intention of working it out and not reporting to their carrier; however, in potential fraudulent incidents, the other driver will allege bodily injury and bring this statement to an attorney to represent them
• DO NOT MAKE ANY ADMISSION OF FAULT
For more information on this contact your insurance agent, broker or insurance company that provides your coverage.
