Auto Accident Scams Constitute Insurance Fraud

Insurance companies recognize that policyholders are encountering a larger number of auto accident scams all across the country.  Scammers work long stretches of road where victims can be cornered using multiple vehicles.  Once the accident occurs, all but the scammer vehicle involved will disappear.  These activities leave the policyholder appearing to be at fault in the accident.

Local authorities are aware that the following scams are growing in popularity and are working with insurance companies to identify the perpetrators:

  • Swoop and squat
  • Sideswipe
  • Drive down
  • Panic stop

Each one is enacted in the exact manner the name describes.  Sudden stops are the common factor in each method.  The policyholder is targeted because he or she is alone in their vehicle, so there are no witnesses.  The scammer has multiple people in his car to act as witnesses that the policyholder was following too closely.

The goal is to make injury claims against the insurance company and receive large settlement amounts as a result of the litigation process.  Some drivers have resorted to using dash cameras to record the event and help thwart these types of scams prior to litigation.

To discuss other methods of preventing fraudulent claims and the potential impact on your automobile insurance program, please contact Chivaroli Premier, today.