Learn About Auto Insurance Scams and Fraud

Man and women examining a car with very little damage after accident

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If you become a victim of automobile insurance fraud, you pay. Not only will you pay higher premiums because you may acquire a costly claim, but, as with any car accident, you and your family could pay with your lives. It is important to learn more about fraud protection so you can protect yourself from others who may choose you to be a part of their next car insurance accident fraud scam.

History of Insurance Fraud

Insurance fraud began when insurance first began. Incidents have been recorded as far back as ancient Greece. Ship scuttling was an insurance scam in ancient Greece where ships were purposely sunk. Later insurance fraud traveled to England then to America. When automobiles were introduced it opened a whole new arena for fraudulent insurance claims.

Today, with modern technology, many fraudulent car accident claims do arise from sophisticated organized crime rings that can be hard to detect. Don't let this make you a victim of an insurance scam. Whether the insurance scam is from an organized crime ring or an individual, there are fraud protection steps you can take to help you be more aware and avoid being a scammer’s next victim.

Learning About Insurance Scams

First, it is important to know what types of insurance scams are used. There are many types of car insurance scams. Set-up car accidents can range from vehicles deliberately stopping in front of a driver to cause a rear-end car accident to drivers who pretend they are being helpful but intend to cause a car accident that will look like the innocent driver's fault. Scams can also involve people one would generally trust such as doctors and lawyers.

Educating yourself more about fraud protection against car insurance accident scams is the best way to avoid being someone's next victim. Here is a list of common scams to be aware of:

Staged Rear-End Accidents

A scam driver will quickly get in front of an innocent car and then slam on their brakes. This causes the innocent driver to rear-end the scam driver. Along with collecting money for vehicle damages, the scam driver will often fake medical injuries to collect even more.

Adding Damage After the Accident

After an accident, either staged or not, the scam driver will go to another location and cause extensive damage to their vehicle and claim that the damage happened during the original accident.

Fake Helpers

Scam Helpers will wave an innocent driver into traffic but then crash into the innocent driver. When it comes time to file the claim, the scam driver will deny waving anyone in.


Other ways that fraudsters try to scam people including offering to help an innocent driver find an auto repair shop, doctor, or lawyer. In this case, everyone is in on the scam. The body shop charges you enormous rates, and the doctor and lawyer also lie to collect more from your insurance.

Since these scams can happen at any time and place, it is important to be prepared. Awareness is the most important. Watch for drivers who may be following you or examining your driving habits.

Make sure you leave plenty of room in front of you in order to stop. If an accident does happen, take notes on everything about the other car, the accident, and everybody that was in the other car. Keep a disposable camera in your car to record damage to both vehicles. Furthermore, use your judgment in driving, not others'. Make sure you have enough room to get out and just let other cars pass instead of letting others "waive you in." When you talk to your insurance company, let them know if you felt something was suspicious.