How to Recognize Auto Insurance Scams

Auto insurance scams usually occur when accidents are staged. The event is made to look like an accident when in fact it was completely intentional. These scams are done to collect money from the insured driver's insurance company. Here's how to spot them:

 

The Brake Slam

Scams occur when the driver intentionally slams the brake in front of another car. The result is a sudden break from the other car, causing damage to the driver who did the intentional brake slam. As a result, the innocent driver will have to pay for the damage.

The Side Swipe

Another kind of scam is the side swipe. The innocent driver drifts to an outer lane. After which, the other driver side swipes a drifting car. Watch out for this one in busy intersections where lanes have dual left turns.

The Swoop and Squat

One scam involving more than one person is the swoop and squat. The 'squat' driver is in front of the unsuspecting car. All of a sudden, another car goes in front of the squat driver. The squat driver is then forced to slam on the breaks, with you, the unassuming driver crashing into the front car's rear. This is the most dangerous scam since a lot of injury and damage is involved.

The Panic Stop

The panic stop scam involves an old car with passengers. This usually happens if the car behind the old one is distracted. A signal is given to the driver in front, who then hits the break. A collision happens between the two cars, causing damage to the vehicles and possibly the passengers.

Proper investigations can usually identify these scams should a sudden accident occur. However, avoidance through defensive driving is always your best bet in avoiding these types of Insurance scams.