How Is Car Insurance Fraud Committed?

Car Insurance Fraud occurs when insured and uninsured drivers try to stage an accident, so that they can collect money from the victim's insurance company. Insurance fraud has been around for hundreds of years, even back in Greece (when insurance first began) when ship owners would purposely hit another ship or sink their own ship to collect money from their insurance policy. Today, there are many forms of car insurance fraud, such as the swoop and squat and the intentional brake-slam.

Intentional brake-slam is when a driver drives in front of you and slams on the brakes purposely out of no where, so that you can crash into them. To the insurance company, this will look like it is your fault, so you will have to pay the driver who really caused the accident. Today, many insurance companies are aware of these happenings and are wearier of whom to give out the money to. Deep and thorough investigations regarding accidents such as this are given to ensure that it was not staged or fraudulent.

Various people stage accidents; individuals and organized crime criminals. With the swoop and squat, there are more than one drivers and vehicles in on the scam. Two of the vehicles in the three car accident have criminal drivers. The "squat" driver positions his car in front of the victim, while the "swoop" driver passes in front of the "squat" car, which causes him to slam on the brakes, causing the victim behind them to crash into the rear of the "squat" driver. Not enough time is given for the victim to swerve or slow down. Of course the swoop car doesn't stick around to explain to the cops what happened, so it is left up to the victim's insurance company to pay for the accident and file a report as the cause of the accident. All personal injury and damage claims that are given have to be paid for by the victim.

Many people may not realize what just happened. The swoop and squat is a very dangerous matter and many times results into a fatal accident with the victim and/or criminals. This is especially so when the staged accident occurs on the freeway. Many car insurance fraud criminals may look at it this way, 'the faster the victim is going, the more damage will be done'. But they aren't thinking of the fatal consequences, especially that of the squat driver who will be heavily rammed. Their car could easily be pushed into oncoming traffic or in front of other fast cars speeding down the next lane.

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