Car Insurance Fraud – The Most Common Tactics
Fraud has a history as old as humans itself. Throughout our history, people have tried to defraud one another. The only difference us that the nature of fraud has changed over the years. In this article, PitStopArabia will be elaborating on the most common car insurance frauds that people are likely to fall victim to.
You might think that you are too street smart to fall victim to a fraud. But it can happen to anyone at any time. Therefore, pay close attention to what we are about to discuss. You might learn something new that will help you avoid fraud. You can also share this information with your friends and family.
Let us start.
Bogus Insurance Brokers
Most of us do not have enough time on our hands to visit multiple car insurance providers. Nor do we have the time to go through each policy. Most people also do not understand the technical jargon used in insurance documents. It is why people prefer insurance brokers. They have so much experience that they know each company and policy like the back of their hands. The promise of a ‘better deal’ is what entices many people to go to brokers in the first place. There is nothing wrong with it. However, if you are not careful, you might end up being a victim of fraud.
How?
It is quite simple actually. Many of us do not check the license/credentials of the broker. We just assume that they are legal. We sign the documents & hand over the payments. In return, the broker gives you official documents which detail that you have gotten insurance from company ABC. But in reality, the documents are all fake. You just paid money for a bunch of bogus documents. While it may seem exaggerated, this type of automobile insurance fraud is quite common.
Therefore, before opting to sign anything or handing over the money, make sure that the insurer is actually a licensed individual. In the UAE, brokers are not allowed to operate without a license. The license is issued by the UAE Insurance Authority after carefully analyzing the applicant’s credentials.
Cash for Crash
You might have heard a story or actually seen a footage where a driver forces the vehicle behind them to ram into them. If not, we suggest you to quickly Google ‘Cash for Crash’. We guarantee that you will be surprised and also gain valuable information in the process. In most instances, when a driver from behind rams into the vehicle ahead of them, they are at fault. The reason is that drivers are expected to maintain a reasonable distance between themselves and the car ahead.
In the ‘Cash for Crash’ scenario, the driver ahead suddenly applies the brakes and causes the vehicle behind to crash into them. Then, they force the driver to pay for the repairs, medical and other expenses. Usually, a group of people are involved in this scam. Again, you might consider yourself too smart. But this type of scam is quite common throughout the world.
Installing a dashcam, keeping a safe distance between yourself and the car ahead, and remaining vigilant are some of the ways which can help you avoid being a victim of this scheme. Please note that many people do not even realize that they have been a victim of this fraud. They prefer paying the cash to avoid any further legal challenges.
Final Thoughts
This concludes our article today. We also request you to share this article with your friends and family. You might be smart enough to avoid such a situation. But others might be cajoled into these situations without them even realizing it. The elderly and young drivers are more at risk of such fraudulent practices.