Ask A Question
Auto insurance fraud is a huge problem both in the United Kingdom and internationally, costing millions of pounds every year. From the simplest of insurance scams to unbelievably complicated cons, criminals have made huge sums of money by illegally scamming insurance companies.
But how can you tell if you’ve been used in an insurance scam? One of the best things you can do is to be prepared; knowing about the scams that are out there is one of the first steps in being able to avoid them. So to try and get you better prepared, here are a couple of the most common types of insurance fraud you’re likely to encounter
One of the most common is staged accidents, usually involving two or more accomplices and your own vehicle. In a simple example, one driver might get in front of you, with the other behind you. Then the driver in front slams on his brakes, causing you to do the same and the driver behind you to hit you in the rear. The driver in front of you then drives away, leaving you and the other driver at the scene. The other driver would then claim you stopped for no reason, making it look very much like it was your fault.
Mechanics can also get involved in insurance scams, as for them it can be worryingly easy. A couple of the ways mechanics can do this is to cause more damage to the car than there was originally, then bill your insurance to fix it. Alternatively, they could bill for work that they haven’t actually done, or didn’t need doing in the first place. Although the vast majority of mechanics and garages are honest and trustworthy, it’s always in your interest to pay close attention to what your mechanic is doing, and maybe take pictures of your vehicle directly after the accident.
The best ways to avoid scams like this are to be as aware as possible when driving; don’t drive too close to other cars and do your best to keep a safe distance between you and all other vehicles whenever you can. You need to make sure you’re properly insured too, that you have a full policy from a reputable and well-known insurer. If you have temporary car insurance (1 day insurance, 1 week, 1 month, etc) you’ll still be able to claim, although you’d be well advised to make notes of everything that happens and if possible, to photograph as much as possible.
If you’re looking for a cheaper insurance provider, you can go online and compare insurers, by looking for sites that allow you an instant car insurance quote, although if insurance fraud is something you’re concerned about, you may want to consider not going with the cheapest provider.
Tags: car insurance, fraud, insurance scams
Posted in Insurance · July 23rd, 2010 · Comments (0)
When you come across a car, van or bike you want to buy, be it in adverts, a magazine, online or on a dealers’ forecourt, it can be very tempting to buy it there and then.
It would be sensible however to test drive the vehicle before you purchase it, rather than buying it simply out of impulse.
While some dealers will be able to let you test drive a car using your own policy, some dealers won’t want to let you test drive a car. Similarly, you probably won’t want to add the vehicle to your own policy, as this will risk any no claims bonus you have and will cost you a fair amount of money. If the car you wanted to buy was being sold privately, you simply won’t be insured to test drive it.
This is where temporary car insurance can be especially helpful, as it would allow you to organise coverage for yourself on a car you don’t own. This will mean you can drive the car safe in the knowledge that you’re covered should you have an accident. Normally, you’ll only need 1 day insurance to cover yourself for the day you want to test drive it, meaning you’re OK to drive the vehicle. Alternatively, you could take out insurance for a slightly longer period of time, meaning you can give yourself room to organise annual cover in the event that you purchase the vehicle.
Should you decide to test drive a car without proper insurance, you’re risking a lot more than just potentially having to pay for any damage done to the vehicle while it’s in your possession. If you get stopped by the police and you’re uninsured, you risk six points on your license, a £200 fine and could even face disqualification from driving.
Using short term car insurance will mean you’re protected and won’t have to worry about paying such a heavy penalty for driving without proper insurance.
Tags: car insurance, cars, short term insurance
Posted in Cars and Trucks · July 22nd, 2010 · Comments (0)