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Common Car Insurance Scams

Common Car Insurance Scams

Driving a car is as close to an everyday necessity as it can get in 2023. However, for the safety of everyone on the road, it is the responsibility of every car owner and operator to have car insurance. While car insurance is supposed to safeguard drivers from accidents on the road, there are numerous ways car insurance can be used as a means to scam you.

What Is Car Insurance Fraud?

Car insurance fraud can be defined as deceptive activities and false claims made by individuals to exploit insurance companies or policyholders for financial gain. Auto insurance fraud accounts for billions of dollars in losses each year and is a clear problem that scammers routinely take advantage of. Ultimately, consumers are paying the price for car insurance scams through rising insurance premiums that have nearly doubled from $400 to $700 per year for the average American family.

Two Types of Common Car Insurance Scams

Car insurance scams can be separated into two main types of fraud:

  • Hard fraud

    Is when scammers use overtly illegal behavior for financial gain. An example of hard car insurance fraud is filing a false report of a stolen vehicle. To receive an insurance payout, the scammer will find a way to make the vehicle “disappear” by either destroying it or leaving it abandoned in an unknown area. Another common example is staging or planning a car accident. In this scenario, a driver will deliberately manufacture an accident by either backing into a car or slamming on their brakes in order to get rear-ended, whatever will make them seem like they were the victim of an unavoidable situation.

  • Soft fraud

    Typically involves withholding, falsifying, or exaggerating information on a car insurance claim to save money or increase a payout. Scammers will omit information to get cheaper rates on their insurance. They will also exaggerate claims, fake an injury, or overvalue the price of the vehicle that was damaged in the accident to generate a higher payout.

Attempting any and all types of car insurance fraud could land you in prison or leave you with hefty fines and legal fees. Therefore, it is best to hire a car accident lawyer to help you avoid mistakenly committing car insurance fraud and ensure that your insurance claim is filed correctly.

Experienced Car Accident Lawyers Near You

If you have been in a car accident in the Southeastern Missouri area and suspect that it may have been the result of common car insurance scams, turn to the professionals at Lanzotti & Rau. The experienced car accident lawyers at Lanzotti & Rau can help you avoid common car insurance scams and pursue legal action to receive just compensation for your car accident injury.

To learn more about our car accident legal services or how we handle our cases, call us today at 573-335-9300 to schedule a free consultation.