From staged accidents to inflated claims, learn to recognise and avoid common insurance scams.
While most insurance claims are legitimate, scams are unfortunately common. Fraudulent claims drive up premiums for everyone and can leave honest drivers facing higher costs.
Staged Accidents
In a staged accident, a scammer deliberately causes a collision and then blames the innocent driver. They may brake suddenly for no reason or wave you on and then collide with you. Always drive defensively, maintain safe distances and install a dashcam to record incidents.
Fake Injuries and Exaggerated Claims
Some fraudsters inflate repair costs or medical bills. Be wary of unsolicited referrals to tow trucks, repair shops or healthcare providers. Contact your insurer immediately after an accident and follow their guidance on where to get repairs.
Identity Theft
Fraudsters may use stolen personal information to open insurance policies or file claims in your name. Protect your personal data, shred sensitive documents and monitor your credit report regularly.
By staying vigilant and reporting suspicious activity, you can help reduce insurance fraud. Follow Karmeka for more tips on protecting yourself and your vehicle.