Recognize Auto Insurance Fraud and Avoid the Pitfalls

Auto insurance fraud is a rapidly growing problem throughout the United States and Canada. As well as costing auto insurance companies millions of dollars every year, some of the underhand tactics employed by fraudsters can implicate honest road users and this can lead to higher auto insurance rates in the future.

A recent survey carried out in Ontario saw 87% of drivers agreeing that auto insurance rates were excessively high because of the fraudulent behavior of others. However, road users are able to take preventative measures to ensure they don’t become direct victims of auto insurance fraud:

  1. Always contact your auto insurance company immediately if you are involved in an accident. Allow them to arrange towing, accident management and a preferred body shop. This alleviates the risk of fraudulent companies making large commissions from your chosen carrier. ‘Chasers’ have become a huge problem in recent years and motorists must always be vigilant over the way these individuals operate.
  2. Always keep a detailed record of your accident and be sure to include the contact details of others involved in the accident and any eyewitnesses who were present at the time. This will help your auto insurance company build a solid picture of events and could end up saving you money on future auto insurance quotes.
  3. Always be aware of the behavior of other road users. Some individuals deliberately stage accidents so that they can claim compensation from the liability section of your auto insurance policy. If you feel another driver is following you too closely or driving erratically, pull over and let them go on their way. There is usually a strong chance that drivers of this nature are trying to involve you in an accident.

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