(NC)—Canada has a new multi-billion-dollar industry, but it’s doing more harm than good. It’s called auto insurance fraud and it’s caused by deliberate or staged accidents. The Insurance Bureau of Canada estimates that insurance fraud, which includes these staged car accidents and the subsequent filing of false insurance claims, is costing policyholders and insurance companies billions.
Being able to recognize auto insurance fraud is the first step in prevention. The people who commit this crime don’t necessarily stand out as criminals. Some may be members of large organizations with well-planned, multi-levelled operations that run like a well-oiled machine, others are merely regular folk who see an opportunity to take advantage of the system.
For example, one common scenario is that the perpetrator will wave at an innocent driver to merge or change lanes only to then deliberately cause a collision.
In each situation, the innocent driver is charged with an at-fault accident according to common traffic rules and could be seriously injured from the deliberate collision, while the perpetrator’s car is typically full of passengers who claim to need expensive health treatments.”
Here are five valuable tips to help you avoid a fraudulent accident:
1. Leave significant space between you and the vehicle ahead in case they brake suddenly.
2. Be wary if someone waves you in to merge or change lanes as they may be setting you up for a collision.
3. Exercise extra caution when making a left-hand turn because the oncoming car, which may seem far away, could deliberately accelerate and hit you.
4. Pay attention when you are driving, as the fraudsters deliberately target distracted drivers – for example, a driver talking on a cell phone.
5. If you are in an accident, be wary if you are pressured or offered money by anyone to use a particular auto body shop, paralegal or medical professional. Ask your insurer for a list of recommended auto body shops.
