Trust Nobody In Terms Of Fraud

By Author: Marcus Stalder
Total Articles: 491
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Do you know how to protect against insurance fraud? It costs Americans $80 billion each year, or $950 per person, and it affects people of all ages, incomes, and races. Luckily, following some basic steps and staying cautious can save you money - both directly from avoiding needless repairs, and indirectly from contributing to higher insurance costs.

Unsolicited Inspections

The starting point to insurance fraud can often come from "professionals" claiming you need repairs to your vehicle when none are required. To counter this, do not accept unsolicited inspections to your vehicle (or home, for that matter). Of course, if you are seeking professional advice for a particular vehicle problem, that is acceptable. But if unrelated repairs are suggested, be cautious as this may not be covered by your insurance provider.

In the event of an auto accident, be wary of anyone approaching you claiming to be your insurance provider, a medical professional, or an attorney and advising you to seek representation. In some cases, you may even be approached at the scene of the accident. Always make sure you are speaking ...
... with who you think you are: ask for a driver's license number and references.

Protect Yourself

To avoid unnecessary repairs and inflated costs, make sure all repairs are put in writing, cost estimates are clear, and there are no blanks on the sheet. Blank spots are gateways to significant additional charges, which can be filled in at any time.

When you are in an auto accident, make sure you record the other driver's:

- driver's license number
- license plate number
- insurance information
- contact information

You should also keep a pen, paper, and disposable camera in your car to take notes and pictures of the accident so you have the most accurate record of it. Avoid hearsay and exaggerations by other drivers. Some accident fraud comes from people hoping to collect insurance money from an accident that they intended, but looks like your fault to authorities.

You are in Charge of Your Policy

Do not be afraid of getting multiple opinions. Mechanics and others who make their living from accident disputes - legally or illegally - have every interest in keeping you with them, and may pressure you into getting work done quickly, or guaranteeing their quality and speed. Always consider shopping around to get the best understanding of what you need to resolve accidents and other car issues.

Furthermore, never let contractors persuade you that they understand your policy better than you do, or that you should not be in close contact with your auto insurance provider. Your insurance policy is ultimately your responsibility, and you are the one with a vested interest in maintaining low rates and only necessary repairs, whereas contractors, again even otherwise legitimate ones, are interested in more work.

And you can always get a new policy for less by using auto insurance quotes.

Protecting Others is Protecting You

Auto insurance fraud affects everyone; by inflating prices and making fraudulent claims in the American private insurance system, insurance premiums rise for everyone as insurance companies increase their costs. Ultimately, everyone pays the price for insurance fraud. If you have any information about insurance fraud you can anonymously contact the National Insurance Crime Bureau at 1-800-TEL-NICB, or online at www.nicb.org.