Tips for Avoiding Motor Insurance Scams
Updated On August 12, 2021 | by Joseph Williams
Motor insurance are useful, even if you get trucking authority, it is important to get it insured. However, Motor insurance scammers will take advantage of anyone they consider ignorant, which is usually new car owners and motor insurance policyholders. They use deceptive measures to scam you out of money, including staging car accidents, filing fake injury claims, and engaging in agent fraud. To help you protect yourself and your car, this article identifies the most crucial tips of avoiding motor insurance scams.
Also Read: 4 Characteristics of a Vapt Report
Staged Car Accidents
Motor insurance scammers will go as far as staging a car accident and providing fake testimonies or ‘assistance’ to lure you into admitting fault and paying for damages. Some examples of the most common choreographed auto accidents include:
Scam 1: Swoop and Squat
In this staged car accident, the scammer reduces their driving speed, stops in traffic, or swoops their car in front of you, causing you to hit them from behind and immediately making you at fault.
Tip: Never follow cars too closely and allow plenty of space in front of your vehicle to allow you enough time to stop quickly.
Scam 2: Phantom Victim
This is when the other driver, whom you were involved in a car accident with, tries to file injury claims for non-existing passengers.
Tip: After an accident, collect the full name, home address, and contact information of everyone in the other car, not just the driver. You can also take pictures.
Scam 3: Bad Samaritan
Here, after a car accident, you are suddenly approached by someone pretending to be an insurance agent. They try to persuade you to visit a specific insurance lawyer or health clinic, where they then get your personal information and use it to file a false insurance claim.
Tip: Never disclose your personal information to anyone at the accident scene except for sharing your name, license number, and contact information with the other driver.
Fake Personal Injury Claims
The scam: You get into a minor car accident in the parking lot, for example, and some days later, the other driver claims to have suffered whiplash. Most scammers use whiplash as the go-to physical injury as it does not appear on x-rays. They will even wear a neck brace during the proceedings but are only pretending to get compensated.
Tip: Whenever you are involved in a car accident, even a minor one, report it to the police and take pictures of the scene, car damage, and any injuries. Present this information to a personal injury attorney the moment the other party claims injury.
The scam: A corrupt insurance agent includes extra insurance coverage in your policy without your consent or keeps your money and fails to get you an insurance policy in the first place.
Tip: Before hiring an agent, interview them and check that they are licensed to practice in your state. You should also go through the insurance policies yourself or have an attorney look them over.
Fraudulent Auto Repairs
The scam: A car mechanic exploits your lack of ‘car knowledge’ and overcharges you to install low-quality parts or parts you don’t even need.
Tip: Only have your car serviced and repaired at a well-known and reputable repair shop. If you are new to an area, research auto mechanics in your area or ask for recommendations from friends and family.
Additional Tips for Your Safety
When applying for auto insurance cover:
- Check whether an insurance company or agent is licensed by contacting the insurance department in your state.
- Ignore all unsolicited internet or email advertisements on insurance offers.
- Don’t buy insurance coverage from a door-to-door insurance salesperson.
- Avoid insurance policies where the premiums for the same risk are significantly lower than the competition.
- Don’t share your insurance identification number or personal information with people.
- Confirm that the ‘’free services’’ are not listed as additional charges in the fine print.
- Never sign a blank insurance form.
After a car accident:
- Don’t share information with anyone not involved in the accident that tries to convince you to contact a specific attorney or health center.
- Avoid anyone tow truck drivers that volunteer to tow your car to a specific repair shop.
- Take photographs of the scene and damage yourself or delegate this duty to someone you know.
Contact DirectAsia Singapore Car Insurance
Learning how scammers work is the most crucial thing. With https://www.directasia.com/motorcycle-insurance/ you can easily identify fraud for what it is and protect yourself. Another equally effective way to protect your interests is to consult with a respectable insurance company like DirectAsia. This insurer allows you to study and customize your motor insurance policy to your needs and provides you with additional benefits such as 24-Hour Breakdown Assistance. Contact them today to learn more.