2023's Top Car Insurance Scams and how to avoid them with a dash cam

How the scam works: In this scam, the fraudster intentionally causes an accident to make false claims for injuries or damages. These staged accidents can include hard braking (or panic stops) and wave-and-hit. According to the National Insurance Crime Bureau, staged accidents occur more often in urban areas. They tend to target wealthier communities, as well as newer, rental, and commercial vehicles, where there is an assumption of better insurance.

How the scam works: In this scam, an unscrupulous passenger jumps into the car of the other driver involved in an accident and claims injury, even though they were not in the car at the time of the accident.

How to stay safe: With no police or witnesses, it’s your word against theirs. The best thing to do is collect accurate information at the scene of an accident. Take pictures with your phone. If possible, get the names and contact information of everyone involved, including any witnesses at the accident scene. You can also call the police and ask them to file a report - and you can file a claim with the police report and file number. You can also scan the area for security cameras that may have recorded the scene of the accident from other angles.

How the scam works: Unsolicited tow truck drivers wait to take advantage of drivers who have been involved in an accident. They offer to tow the vehicle and then charge an exorbitant fee. Shaken up from the accident, you authorize the tow to a repair shop recommended by the tow truck driver. The repair shop pays the tow truck driver a fee for bringing your vehicle to their shop. The repair shop will then overcharge for repairs and make up required repairs, costing you and your insurer more money.

How the scam works: This scam involves falsely inflating the number of damages to a car after an accident to receive a higher settlement from the insurance company. Fraudsters often will claim an injury that is difficult to notice, such as whiplash or other internal injuries.

How to stay safe: Unfortunately, protecting yourself against exaggerated injuries is almost impossible. But you can still collect accurate information at the scene of an accident and take pictures with your phone. If you suspect the other party is injured, it’s always better to call the police for emergency medical assistance.

How the scam works: This scam involves repair shops overcharging for unnecessary or fake repairs or using used or counterfeit parts instead of new ones. Unethical mechanics prey on those who don’t know their way around under the hood of a car. Exaggerating repair costs occurs in many instances, such as repairing with used parts but billing the insurance company for new parts or simply billing the insurance company for work that was never performed. The airbag repair scam is a classic car repair insurance scam.

Car insurance scams can target anyone, but certain groups may be more vulnerable due to their lack of knowledge or experience with the insurance system. Some groups that may be targeted more often include:

1. Elderly individuals: Older individuals may be more likely to fall for scams because they may not be as familiar with modern technology or may be more trusting of individuals who appear to be knowledgeable or professional.

If you suspect you have been a victim of car insurance fraud, it's important to report it to the proper authorities. Here's how to do so:

1. Contact your insurance company: If you suspect that you have been a victim of insurance fraud, the first step is to contact your insurance company. Your insurance company will be able to provide you with guidance on how to report the fraud and what steps to take next.
   
   
2. Report the fraud to the National Insurance Crime Bureau (NICB). The NICB is a nonprofit organization that helps to detect and prevent insurance fraud. You can report car insurance fraud to the NICB by calling their hotline at 1-800-TEL-NICB (1-800-835-6422) or by visiting their website at www.nicb.org.

Yes, it can!

Using a dash cam can help protect you against these scams by providing objective evidence of what happened during an accident. The dash cam footage captured can help refute false claims and provide solid video evidence to support your case. Dash cameras record the view from a vehicle's front, rear, or interior and can help establish facts such as the speed of the vehicles involved, the actions of the drivers, and the road and weather conditions at the time of the accident. These measures can help prevent you from becoming a victim of car insurance fraud.