But there are also substantial financial costs associated with insurance fraud, and these have widespread consequences. In the state of New York, Senator Charles Schumer's office found that car insurance scams cost each driver in New York about $200 a year, for a total of 1 billion dollars. Car insurance quote numbers skyrocket because someone has to pay for all of these claims.

How does this happen? Well, auto insurance fraud takes many forms. The best way to protect yourself is to be skeptical when any accident occurs, and to watch out for common con artist schemes. You should also know how to collect information at the scene of an accident that can protect you against cons.

Some tactics for creating accidents are so common that they have their own street names. For example, there's "The Swoop and Squat." This involves using two cars to box in a victim. The first driver "swoops" in front of the victim, so close to the victim's car that he or she has no time to react. Then the second car slides in next to the victim so that they cannot change lanes. The front car slams on the brakes and the victim can do nothing but plow into the scammer.

One of the most common and dangerous staged accidents is the "T-Bone." This is when the scammer smashes his or her car into the side of a car passing innocently through a green light or stop sign. Accomplices then falsely claim the victim ran a red light or stop sign. Because so few cars come equipped with side airbags, this type of fraud causes many serious injuries, and even deaths, to the victims.

Even if the accident is legitimate, that still does not mean that there isn't a car insurance scam waiting to happen. Unscrupulous repair shops can inflate the cost of repair, claiming damage that did not occur, or exaggerating the seriousness of the damage. They may even declare the car "totaled," which means it would cost more to fix it than it is worth, and then sell the car to a chop shop for parts, or to be put back on the road with fake identification numbers and paperwork.

So, what can you do to protect yourself? First, drive defensively and make sure that if you are in an accident that you take note of any suspicious behavior on the part of the other drivers and their passengers. Get full information from everyone, and take pictures of the accident. These can help in determining the severity of the accident, and if any of the people involved has a history of insurance fraud, they may be caught.

Protecting yourself means finding a trustworthy repair shop. Your insurance company can help with this. Ask for their recommendation. Once you have a reputable garage, make sure to ask for an itemized listing of the repairs they did. If something seems suspicious, ask questions. Getting a second opinion from another repair shop is always a good idea.

Even victims who survive car insurance scams unscathed can feel helpless and angry. The best defense for keeping insurance costs low, your driving record clean, and the roads a little safer is simple: Street smarts and good documentation.