Insurance fraud can be an insidious thing, and makes it difficult for insurers to continue offering discount auto insurance. The reason is, of course, that such fraud drives up the cost of doing business; investigations and prosecution take time, cost money and require the use of resources that might otherwise go toward servicing legitimate claims. However, insurance companies are not the only ones who fall victim to insurance fraud and abuse. As some Canadian car insurance customers have discovered in recent months, policyholders themselves are frequently the target of insurance fraud and it happens in the U.S. even more.
Regardless of which side of the border you live, as the economic conditions carefully engineered by Wall Street continue to deteriorate and ordinary people become increasingly desperate, you’re going to see a lot more of this sort of behavior and it may come at you from the directions you least expect.
Beware of This
There is a breed of lawyers known as “ambulance chasers;” these unethical members of the legal profession seem to magically appear when and wherever an automobile accident occurs. However, lawyers are not the only people who do this; some towing companies are also guilty of operating in this manner. Sometimes, they are in league with ambulance chasing lawyers; others work with various clinics and vehicle repair facilities, from whom they receive “referral fees.” Do not accept their services; call a tow company that has been approved by your AAA or Better World Car Club towing service, or one that has been designated by your insurer (whom you should be calling immediately after the accident, if possible read on).
On the topic of repair shops, you should be aware that auto insurance providers usually have specific facilities with whom they are affiliated or have approved for such services. It’s a good idea to know in advance which ones you should have your vehicle taken to. This is not because your insurer makes more money or gets “kickbacks” (if they are, they are in violation of several laws); insurers develop long-term relationships with these shops in order to protect consumers, making certain that repairs are guaranteed and that policies are in place to protect customers’ private information.
In short, it is to your benefit to take your damaged vehicle to an approved repair shop.
What to Do If You Are Involved in an Accident
While you are understandably shaken, it is important (assuming you are not severely injured) that you remain calm and take certain steps; even the best car insurance company cannot help you unless you take steps to protect yourself.
First, make sure you call your insurer immediately. The company will usually send a representative to the scene of the accident to assist you in getting information, taking pictures, arranging for a tow truck and contacting your next-of-kin if needed.
Secondly, do not speak with anyone except law enforcement officers and your insurance company representative except to exchange basic information and above all, do not admit responsibility. More importantly, do not under any circumstances sign anything until you have legal representation.
Finally, if you suffer injuries requiring medical treatment, keep meticulous records of all procedures, when and where they were performed, the names of the physicians and nurses involved and cross check these for accuracy with any statements you receive from your auto insurer. In the profit-driven U.S. health care system, this is a prime area for waste, fraud and abuse and nobody is going to protect your interests as well as you.
Similar Posts:
- Don’t Be Wooed by an Ambulance Chaser
- PCI: Aggressive Towing Practices Drive Up Insurance Costs
- Don’t Accidentally Commit Auto Insurance Fraud
- When Buying the Cheapest Auto Insurance, Don’t Forget to Protect Your Assets
- What is Errors and Omissions Insurance?
