by Paddy K

Created on: March 12, 2006   Last Updated: March 25, 2007

Being in a fraud is very easy particularly if you are not well informed. Insurance premium amounts are very lucative ones, you always feel that the lesser the amount, the better is the insurance company , but always do your research.

BE CAUTIOUS.

1.The Agent/Insurance company may offer you the lowest premium and you take their insurance. Once you are involved in an accident, you find that your cliam is rejected becaused you are not insured. Always buy insurance from licenced Agents, check thier credidentials.Check the Company's track record. Read the small print, you should always have the insurance coverage you paid for

2.Whenever you are involved in an accident, you can claim only when you have the relevent documents to support the coverages. If your Agent delays giving you the paper documents as soon as you are insured, then you must suspect a fraud. Always insist on completed documents and keep them safely.

3.If the Agent is your friend/relative, and you take him for granted and pay him cash for premiums, you may not have receipt for your payments, you may be a victim of fraud. Always pay premiums with check/bank reansfers which has proof to support. Money is hard earned, never trust others...

TYPICAL CASES OF FRAUDS: Courtesy :http://www.ins.state.ny.us/

The staged accident - A vehicle filled with people will stop suddenly in front of you, setting you up as the cause of a rear-end collision. The "victims" will then file costly multiple medical and damage claims using doctors and lawyers who are part of the scam.

Steerers - These individuals will solicit the injured or allegedly injured parties and direct them, for a "referral fee," to lawyers, doctors and/or medical facilities that are part of the scheme. Be on the lookout for steerers at accident scenes and don't become their victim.

Inflated claims - If you are in an automobile accident, be sure you know the extent of the damages to your own car and the other vehicle and carefully review claims. Vehicle owners and body shops frequently inflate estimates for damages and then either perform other repairs not related to the accident or simply keep the extra money.

Good Luck and Safe driving.

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