As with any financial product, auto insurance has plenty of scams associated with the industry. You need to make sure you’re on the lookout for some of the current scams that are in the marketplace. Don’t leave yourself open to financial penalties, fraud, or illegitimate policies.
In this article, we’re going to look over two of the most common forms of insurance fraud currently occurring in the UK. Make sure to take these potential issues as serious as possible. We will also offer some advice on how to avoid some of these typical auto insurance scams.
One of the oldest tricks in the book is the intentional crash. If a scammer is desperate for money, he might resort to attempting an intention crash to seek damages from insurance companies or individuals involved in an accident. The most famous form of this is when someone cuts in front of you and slams the brakes. They do this to ensure you are responsible for the accident, but don’t have time to respond to their reduction in speed.
They then proceed to make claims against you and your insurance company. This can end up being costly if you are unable to prove that you are being wronged. For this reason, it has become popular to purchase dash cams to help ensure you have proof that any scam is not your fault. Dash cams are extremely affordable, despite the level of technology they provide.
This is a relatively new scam that is proving extremely popular in the UK. It’s definitely something that you should be looking out for if you’re in the market for a cheap insurance policy. A number of scammers have been able to trick people into signing up for insurance policies that don’t really exist. They use social media and other channels to connect with prospective customers and offer them deals that are too good to turn down.
Customers are then given a fake policy, or a policy that has been altered to appear real. This means that the person is not truly insured. Not only does this mean that you end up giving your money to scammers, you also don’t have insurance on your car. You may end up having your car seized and pay penalties. Worst of all, if you’re in a serious accident, you won’t have any insurance to cover the costs – which can end up costing you tens of thousands of pounds.
For this reason, make sure you only use reputable brokers or companies to purchase insurance. If something sounds too good to be true, it probably is!
You should always be on the lookout for scams, no matter what type of insurance you’re purchasing. Scammers prey on people who want to get a good deal, and they can leave you without the coverage you need in your most vulnerable time. Make sure to keep up to date with what scams are currently creating problems for people in the UK.