Getting into a car accident is never good, but finding out that you have fallen to a car insurance scam can make matters much worse. You will find that your insurance rates will go up and your policy may even be canceled. You will also get points on your license. This will make any new car insurance quotes that you get extremely high, simply because you were scammed. This is something that happens all of the time, so you need to know how people scam insurance companies in order to avoid it.

The Staged Rear-Ender Scam. In this scenario, the scam artist dodges in front of you in traffic, coming as close to you as possible. Then, they slam on their brakes. They've left you no room to maneuver, and so you crash into their rear end. Since the police and insurance companies almost always decide that the second car is at fault in rear-end crashes, your insurance takes the hit.

Often the staged rear-ender will be paired with the fake medical claim scam. The driver either successfully cons an innocent doctor into believing they have suffered injuries, or pays off a medical accomplice to fake examinations and test results. In either case, your insurance pays for their treatment as well as their "pain and suffering." This type of scam is especially problematic in litigious states. California car insurance is particularly hard-hit, for example.

The Exaggeration Scam. In car insurance scams like these, the initial accident may be staged, but it may be a legitimate crash. In either case, the scammer in this situation does intentional damage to their vehicle before it can be appraised for damage. They claim the damage happened during the accident, and there is no way for you or your insurance company to prove otherwise.

Another common car insurance scam is seen when a seemingly friend person waves you into your lane change or turn. This may come across as a nice thing to do, but they are actually telling you to get into a bad situation. Chances are, the path is not clear, and you will get into an accident. When police arrive, the person claims that they never told you it was clear.

Another version of this scam is seen after the accident itself. People can refer you to various lawyers, doctors, or car repair shops, in order to make a nice sum of money. These businesses then raise their prices in order to make quite a bit off of your insurance policy.

So, how can you protect your self against car insurance scams? The most important of all is to be a defensive driver, and avoid falling into the hands of con artists. Always stay alert to what is going on around you. Don't trust the person who waves you into traffic. Also, do everything you can to keep a cushion of space between you and the car ahead.

If there is an accident, make sure you document everything that happened. If the police are called, make sure you hear everyone's statement and get a copy of the report. Keep a disposable camera in your glove compartment to take pictures of any accident. Finally, if you have any suspicions about an accident, make sure to tell your insurance company about them; they are experts in detecting and stopping scammers.