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Accident Reconstruction Research: Insurance Fraud

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Automobile Accident Fraud

The four most common types of auto accident fraud are:

• staged accidents in which the drivers intentionally collide;

• caused accidents in which the criminal involves you in a wreck that is made to look like your fault;

• auto repair shop fraud by billing for unperformed work or charging to replace parts that were merely repaired; and

• faked accident reports.

Defenses Against Auto Accident Fraud

• Don't put an insurance company decal or sticker on your car. It's a signal to people planning a caused accident that you have liability insurance.

• Don't follow too closely, particularly when the vehicle in front of you has three or more passengers. (People who cause fraudulent accidents pack their cars to increase the dollar amount of the injury claims they will file.)

• Watch traffic in other lanes. A common ploy is for a car in an adjoining lane to swerve in front of you and immediately brake. Again, watch out for nearby vehicles with three or more occupants. When pulling into traffic, give yourself plenty of room.

• Compare the body shop's bill with the insurance adjuster's repair estimate. The amounts -- particularly the parts total -- should be fairly close.

How to deal with Claims Adjusters

Web Sites

• Coalition Against Insurance Fraud
  Fraud news, tips, facts, legislation, regulations and research.

• Insurance Information Institute
  This section covers the efforts being made within the insurance industry and by lawmakers, law enforcement agencies and regulators to eliminate insurance fraud.

• Insurance Research Council
  This section covers the efforts being made within the insurance industry and by lawmakers, law enforcement agencies and regulators to eliminate insurance fraud.

• Insurance Fraud
  This site is brought to you by the Pennsylvania Insurance Fraud Prevention Authority (IFPA).

• Insurance Fraud Guide
  A guide written by a private investigator. Insurance fraud represents a multi-million dollar payoff industry, with less than five percent of all claims resulting in investigation and prosecution.

• InsuranceFraud.com Home Page
  Company dedicated to fighting insurance fraud.

• Fighting Insurance Fraud
  Information on preventing and combating insurance fraud.

• Greentree Private
  Investigations firm specializing in insurance fraud and adjusting.

Articles

• Common Schemes-Auto Fraud

• Public Support Growing for Combating Auto Insurance Fraud

• Comment on the April 6 episode of "The Practice," which featured a storyline involving a chiropractor heading up an auto insurance fraud ring

• ICBC Uncovers Victoria-based Alleged Staged Accident Ring 12 Area Residents Face Civil Action to Recover Settlements, Costs

• Tougher Stand on Insurance Fraud Endorsed By More Americans, Says Survey

• Insurance Fraud The objective of this paper is to make the reader more cognizant of the ripple effect of insurance fraud on the American economy. It will analyze the general problem of insurance fraud while focusing on auto insurance fraud, specifically, as an example of white collar crime. It will analyze the different types of auto insurance fraud and attempt to explain the motivation and opportunity of the individuals committing these types of crimes. It will also discuss what law enforcement agencies are doing or not doing to stem the tide of this growing problem. It will describe how some insurance companies are challenging the defrauders to recoup their financial losses. Finally, the paper will look at some recommended solutions to curb the growth of insurance fraud.