Auto Insurance Fraud: Common Scams and How to Avoid Them

Auto insurance fraud is a serious issue that affects drivers across the country. While most policyholders are honest and responsible, a few attempt to manipulate the system for financial gain. These actions can lead to higher costs for everyone and complicate the claims process for those needing support.

Recognizing the Tactics Behind Fraud

Fraud can take many forms, from staged accidents to exaggerated claims. One of the more common schemes involves orchestrated collisions, where a driver intentionally causes an accident and then blames the other party. These incidents are often carefully planned, with participants working together to make the crash appear accidental. The goal is to file a claim for vehicle damage, medical treatment or both, even when the injuries or losses are fabricated or inflated.

Another tactic involves misrepresenting the facts of a claim. This might include reporting damage that existed before the incident or claiming that more people were in the vehicle than actually were. Sometimes individuals may even submit false repair invoices or use photos from unrelated accidents to support their story.

Fraud can also occur on the provider side. Unscrupulous repair shops or medical clinics may bill for services never performed or charge excessive fees for minor work.

Staying Aware and Informed

Keeping accurate records is one of the most effective ways to support your position in the event of a claim. Taking photos at the scene, collecting contact information and filing a police report can help document what happened.

It’s also helpful to review your policy and understand what is covered. While coverage specifics vary, knowing the general terms of your policy can help you navigate the process more confidently. If something doesn’t feel right during a claim, it’s okay to ask questions or request clarification from your insurer.

Learn More

Contact Bacon Insurance to review your auto insurance coverage and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.