What is Auto Insurance Fraud?
One of the most popular
types of fraud today involves auto insurance, particularly in staged auto accidents. These scams have become rather sophisticated
to a point where they often involve numerous participants. Auto insurance fraud comes in many different
variations - here are some of the most common:
Swoop and Squat: This scam typically involves three vehicles:
two are driven by the con artists while one is driven by the victim. The first con artist drives what is known as
the "squat" vehicle, positioning himself in front of the victim. The second con artist drives what is known as
the "swoop" vehicle, intentionally pulling ahead to cut off the squat
vehicle. This causes the driver of the
squat vehicle to slam on the brakes and come to sudden stop. In the most cases, the victim doesn't have
enough time to react and crashes into the back of the squat vehicle. After the accident, the swoop vehicle skirts
away, never to be seen again. Even
though the victim informs the police about the swoop vehicle that caused the accident,
that individual can't be located, leaving the victim to pay for the damage or
any personal injury claims that may result.
Side Swipe: This
is an accident that usually occurs at a busy intersection or those with dual
lefthand turning lanes. Here's how it
works: a criminal positions their vehicle in the outer-left turning lane. When a victim shifts into the outer turn
lane, they're immediately side swiped by the criminal. Now the victim is caught up in nasty debate
of "he says, she says" and can find themselves liable for the accident, along with
any damages.
Panic Stop: Here
is another common auto insurance scam.
In this scenario, the con artist drives a vehicle filled with numerous
passengers. From there, they position
themselves in front of the victim in anticipation of the next move. One of the passengers is then instructed to
check for any signs that may indicate the visitor is distracted. This may include activity such as constantly
looking in their rearview mirror, talking on a cell phone, or making adjustments
to the car stereo. In general, they
look for any signs indicating the that victim has taken their eyes off the
road. Once something of this nature has
been observed, the passenger gives indication to the driver, signaling them to
slam on the brakes, forcing the victim to slam right into the back of them. Explaining that the criminal stopped suddenly
is usually to no avail for the victim, leaving them to pay for all damages and
injuries that may have occurred.
Unfortunately, there is
no standard method of defense against this type of fraud. The best advice is to remain observant while
on the road and maintain a safe distance from the vehicle ahead of you. If every motorist obeyed the speed limit and
the laws set for distancing, accidents would be drastically reduced and auto
insurance fraud wouldn't be as effective.
Sadly, this isn't reality, making it much easier for criminals to
succeed with these crimes. Because of
this, you should always drive safely and smartly to greatly reduce your chance of
being victimized by auto insurance fraud.
