Insurance scams are the most common type of financial fraud in the United States, immediately after tax evasion. These frauds are so common that more than 30% of those who claim amends have no basis for it. According to the National Insurance Crime Bureau, these staged accidents are happening more and more often, as from 2008 to 2011 there was an increase of 102% of the suspected cases for this type of fraud. These fraudulent claims cost insurers billions of dollars annually. There are many types of auto insurance fraud and here is a list of the 11 most shocking ones.
1. Windshield Replacement Rip-offs
A nice stranger comes to you and lets you know that your car needs a new windshield, and they happen to be working for a vehicle glass company and can provide the change for you, you don’t even have to pay for it. The only thing you need to do is give out your insurance information and everything will be taken care of. Don’t be so naïve. The windshield replacement offer is almost always a scam, according to Farmers Insurance, and you should be aware of that fact.
The fact is that they actually will replace your windshield, but the quality of the new one will probably be so bad that your safety will be put at risk. Other than the threat to your safety, this scam can also cause you to lose a lot of money due to messing with your insurance coverage.
When a scammer has your insurance information, they are able to file claims under your policy and collect money in your name. To avoid this, it is best not to accept offers such as this one. If you really do need a windshield replacement, make sure that you first call your insurance agent to see if it is covered by your policy, in order to avoid scams and additional costs.