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FAKE CRASHES COST EVERYONE

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Recently, we have been discussing auto insurance including ways to save on your premiums, things you should avoid to keep from having your insurance premiums increased and even how we are rated for our insurance costs. This month we will look at fake or “staged” auto crashes because not only do such scams cost everyone but being involved is just more hassle than anyone wants.

First, remember that one of the basic ideas in insurance of any kind is that risk, and the resulting costs from losses, are spread across all of the participants. This means that money wasted on fake or staged auto accidents simply increase the losses to the insurance company and therefore increase the charges they must recover through the premiums that we all pay to be insured. So fake or staged crashes cost us all.

According to the Auto Club of Southern California’s Automotive Research Center (ARC), staged car crashes are on the rise across the country. One of the most common of which is the “swoop and squat” where a car cuts in front of you and stops causing you to crash into them. Often the crooks include another car that blocks your ability to swerve and avoid the crash. And this is just one of the various ways that auto “accidents” are set up or staged to create big insurance claims.

Criminals make money off the insurance companies through a fairly wide range of fraudulent claims. In our next session we will outline some of the things you should do if you think you have been the victim of such a staged crash – most of which you should do even when you are unfortunately involved in a real one.

Remember, Norton Automotive Group does not rate our charges based upon your credit. Norton can provide you with a vehicle that meets your needs at a price you can afford – regardless of credit ratings.

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