It’s no secret that Philadelphia has a relatively high crime rate. And it’s also no secret that one of the best ways to safeguard your vehicle’s value is to buy auto insurance.
What auto insurance does, is it compensates you in the event that something on the policy happens. Depending on the specific type or category of policy you have, will determine what you are covered for and what you are not. For example, a fully comprehensive auto insurance policy is the category where the most comprehensive cover is (and usually the most expensive too), and if you are enrolled in one of these policies, if you get into a road accident, the insurance company will pay to sort out any damages done to your vehicle, if the reparation costs are sufficiently high, the insurance company may choose to simply pay you off the maximum amount, which is enough for you to buy a replacement car of similar specifications.
So auto insurance is a protection method that drivers use to reduce their risk on the road. How does that relate to good for nothing fraudsters, who are constantly trying to find new ways of conning people out of their money?
Well what fraudsters do is they try to make false claims for bills and reparation costs to be paid either on their own car insurance policy or someone else’s. For example, if the fraudster wanted to claim off your car insurance, they would simply have to emergency stop in front of you, and induce a hit into the back of their car from your car. When you hit into the back of their car, the insurance companies will usually side with the car in front, meaning they will make the decision that this road traffic accident was your fault, therefore the claims will be made to your insurance company.
Ok, so they can make a claim, but how do they make the money? Easy, simply but faking the extent of the damage done to the vehicle in that small collision. They can usually work together with garages and mechanics, so that false information is sent up to the insurance company. this information will suggest a much higher cost to repair the vehicle and therefore the fraudsters will be able to repair the vehicle, and pocket some money as well.
Why Do They Do It?
Well for them it’s easy money. All they need to do is scout out for their victim. Maybe a young driver who is experienced, or a car that is driving a bit too close for their liking. A simple quick brake will be enough to induce a collision out of you, and the rest of the game is played on their turf. As it’s rarely the first time they have done something like this, they would probably know the ins and outs of your policy. They would know exactly what they have to say, and what they have to do to extort money out of your insurance company.