Reader’s Question:

Is it true that auto insurance agents sometimes commit insurance fraud?

Melissa

Albuquerque, NM

Yes there are numerous cases of faulty insurance claims committed by auto insurance agents. They typically connive with other professionals you would hardly suspect. The most common people are doctors and lawyers who work with auto insurance agents and make up a story about some car accident. Then they file a claim against the targeted auto insurance company. They provide a legitimate look to their claim by furnishing paperwork that has signatures of various individuals who are purportedly witnesses. They usually file a claim that does not exceed one thousand dollars. Auto insurance companies rarely bother to investigate a claim of such an amount. So, if there are auto insurance agents who solicit for your support by letting you sign questionable documents, then you might just have been an unwitting accessory to a crime. It is also advisable not to pay in cash when negotiating with auto insurance agents. It is always safer to use checks or money order. While driving, you should also be alert for orchestrated accidents. The most common is the rear-end accident where a driver in front of you suddenly slams on the brakes, thus causing you to hit the car from behind. Defensive and safe driving coupled with a little vigilance will help you avoid such pitfalls. Insurance fraud is gradually getting widespread, and you do not want to be hooked into such a bad situation.