Cashing In On Crashes – Scam Methods Used To Stage Car Accidents

A staged car crash occurs when one driver maneuvers the situation so that an accident happens and an innocent driver gets to be blamed for the incident. Although the damage may be slight, the “victim” will declare more expensive and serious damage or injuries, and the main reason for this is so that they can cash in on the other person’s auto insurance. Staged car crashes are easy for experts to perceive, but crooks are becoming more and more creative in their ways. Drivers should also be aware of this form of modus operandi so that they will not become victims.

Scam Methods

Scammers are quite imaginative in devising ways to cause road accidents where they will look like the victims. Some of the techniques that they use are swoop and squat, drive down, panic stop, and sideswipe, among a few.

1. Swoop and Squat

Here’s a scenario of a swoop and squat incident. Let’s say that you’re driving along a long highway and you notice that the car in front of you is driving quite slowly; and so, you’re forced to do the same. This is probably the “squat” driver. The “swoop” driver is likely behind you, and you’ll notice that he’ll speed up and pass you, and then cut off the “squat” driver. When the “squat” driver suddenly slams on the brakes, you’ll probably rear-end him, and this is when all your car troubles begin. Even though the accident only resulted in minor damage or injuries, the con-man/driver will make outrageous claims so that he’ll get more insurance money.

Car crash set up. Image Credit: gedankenus

2. Drive Down

The drive down is another common tactic that lawbreakers use. The target could be anyone who is trying to merge into traffic, and he could come from either the road on the left or right side. The crook, on the other hand, is the driver who will wave the victim to go forward. But then, he continues forward as soon as the innocent driver moves his vehicle along too. The dishonest driver crashes into the other vehicle and he’ll claim that he never waved or gave signals in order for the unknowing driver to be able to move forward.

3. Panic Stop

The panic stop technique includes a few deceitful players – the driver and a number of passengers. Their car cruises along and the driver of the vehicle behind them is not even aware that he has become a target. The crooks keep watch of the driver and when he is most distracted, such as when he answers his phone or when he looks away from the road, the other driver suddenly slams on the brakes and the innocent one rear-ends the automobile. The supposed “victims” will all complain of whiplash and other injuries so that they can cash in on the other person’s insurance.

Staging a car accident to get insurance money. Image credit: Dennis Lee

4. Sideswipe

The sideswipe usually occurs in busy streets where there are dual left- or right-turn lanes. The person driving in the inner lane is the one at risk. If he accidentally drifts into the outer lane while he is turning, the dishonest driver will crash into him or sideswipe him.

Crooks come up with a number of clever ways to instigate car crashes where they look like the victims. You really have to be watchful when driving so that you can avoid becoming a victim. Also, in case you do suspect that something fishy is going on, get help from your insurance company and the authorities. More importantly, you need to be aware of the first steps that you need to take after a car accident.

Red Cars And Other Auto Insurance Myths

Red Cars And Other Auto Insurance Myths

As the owner of a red car many have heard the common parable or myth about red automobiles right after purchasing it. Red cars get more speeding tickets, and have higher car insurance quotes and costs. After telling my insurer’s agent all the details she asked about the new automobile so I could get insurance, I asked whether she wished to know what color it is. No, she told me, the insurer does not have a check-box for the car color and does not have to know the color.

I was relieved. It is not the vehicle, it is the kind of person who purchases a red car. Red sports automobiles doubtless do attract people who drive fast, but a red automobile does not stand out simply for its color. It might make you more conspicuous when you drive twenty miles an hour over the road limit, but that is about it.

The real difference is in the driver. Is it a twenty year old male that is getting a red Camaro or is it senior drivers getting a red Audi? Car color does not matter. It is a myth.

Here are five other cheap auto insurance parables or facts. Take the quiz to determine whether you know the difference.

- Having optional collision and comprehensive coverage will get me a new car if I get into a crash?

This is false. Having both is a great idea, but because you are laying out more in premiums does not imply your insurance company will obtain you a new automobile if yours crashes. The car’s worth is founded upon how old it is and how much it has depreciated.

Insurance brokers will attempt to have the car fixed if fixing it costs less than the value of the vehicle. Most people do not see the cash. It is going direct to the car repair shop.

- Vehicle insurance premiums can be paid late because there is a grace period therefore I still have coverage.

False! Insurance policies do not work like credit cards where you have a grace period of no interest. If you are late making an insurance payment, there is not any introductory period and the insurance protection will lapse. Coverage is reinstated when payment arrives so it is paramount to be sure to pay your insurance premiums on time.

There never has, nor will be such a thing as a “grace period” for insurance premiums. You have either paid it on time or you have not.

- Little vehicles get into less crashes because they have better navigation and maneuverability.

Again, this is false. They could be quick, but they also higher crash or collision losses. Little cars cannot take collisions as well as larger vehicles. Small vehicles have higher losses than bigger automobiles, which seems sensible if you have ever seen a little vehicle looking like an accordion after a crash while bigger cars, in some instances, appear to have not been in a car accident.

- If my automobile is totaled, the vehicle insurance firm will not pay off my loan

This is true. Many people may believe differently, but how much you paid for the auto when it was new has no bearing on how much it’s worth later on.

The loan may be for at least the value of the totaled vehicle, leaving the owner “upside down” on the loan for a car that is now worth less to the insurer. These days, many lending establishments will loan up to ninety percent loan to value, and other have high interest rates, but the insurer isn’t paying for the total loss.

- No-fault auto insurance means it is not your fault.

This is a huge misconception is false. The laws change by state but states with no-fault auto insurance usually need your insurance firm to pay for hospital costs and loss of salary for injuries irrespective of who is responsible.

Driving High Will Bring You Down

The legalization of marijuana in Washington and Colorado in November 2012 could have heralded change for the nation’s future regarding the drug. Currently, 18 states have medical marijuana provisions, five have removed jail time for possessing small amounts, and 11 are considering more lenient marijuana laws.
No matter what side of the pot legalization debate you’re on, we can all agree that drugged driving is dangerous. Though some people might boast that they “drive better high,” marijuana is a psychoactive substance proven to inhibit driving abilities. Make no mistake; driving high is driving while impaired, and therefore always illegal, even in states where marijuana use is legal or decriminalized.

The risk

THC, the primary active ingredient in marijuana, is proven to many short-term effects, including:

• Memory and learning problems
• Distorted perception
• Difficulty in thinking and problem solving
• Loss of coordination

In the car, these side effects can translate to an inability to focus and perceive objects in front of the driver, decreased driving performance, poor time and distance estimation, an inability to maintain headway, sleepiness, and lack of motor coordination. A stoned driver also can wind up “over-compensating for self-perceived impairment,” according to a study by the National Highway Traffic Safety Administration. The risks involving drugged driving increase exponentially when alcohol is involved.
Despite the risk, marijuana ranks behind only alcohol as the most frequently detected psychoactive substance among drivers, especially in young drivers.  One in 12 high school seniors admitted to driving after smoking pot, according to Monitoring the Future, an ongoing study of American students and young adults conducted by the University of Michigan. From 2005 to 2009, 42% of fatally injured drivers who tested positive for pot were younger than 25, according to the White House.

The consequences

The White House has introduced a National Drug Control Strategy to reduce impaired driving in the US by 10% by the year 2015. The NDCS especially targets drunken driving, but it fights drugged driving as well. In addition, many states currently work to crack down on driver impairment.
The problem with understanding THC driving impairment is that we don’t have a good way to measure it. Unlike alcohol, drug levels can’t be measured linearly in the blood. THC can remain in the body for months, and the levels in the blood can loop instead of decreasing steadily. Many states have per se laws that penalize a driver if there is any trace of THC in the blood. In these states, the penalties for drugged driving are harsher than for drunken driving because the drugs involved are illegal.  A habitual smoker in these states would probably be unable to legally drive a car. Washington and Colorado, however, have taken a different approach by setting strict legal driving limits for THC blood levels.

The takeaway

Even though the nation may be moving toward marijuana legalization, you should remember that driving impaired is always illegal. Whether that impairment occurs due to alcohol or other drugs makes no difference. By driving high, you risk not only your life, but the lives of countless others. In this case, just say no.

Don’t Fall Short on Car Maintenance

As we dig deeper into fall, it means one thing: Winter is just around the corner. Take time now to get your car ready for the bad weather to come. Otherwise, you could be stuck at home or, worse yet, along the roadside with a flat tire, a blown engine, a windshield you can’t see out of, or some other problem.

So before all the leaves are brown and the sky is gray, make sure you won’t have a problem with the following:

Tired of trouble

First, give your tires the eye test – or better yet, the coin test. Put a quarter into the grooves on several parts of your tires. If at least part of George Washington’s head is always obscured, you have more than an eighth of an inch of tread depth. Tires are considered legally worn out in most states when they’re down to one-sixteenth of an inch.
Now it’s time to check the air pressure of your tires. Here, there’s no eye test; the pressure will be really low if you can see it. Why does it matter? Heat can build up in underinflated tires and cause a blowout. An underinflated tire also will wear faster, and your gas mileage will suffer greatly. Tires tend to lose pressure when the weather cools.
You can find the car manufacturer’s suggested pressure on a sticker in your car door or in your owner’s manual. It’s possible the requirements will be different for front and back tires. You’ll need a tire gauge to measure it, and you should do it when the tires are cold. If the pressure is low, go to a gas station and add air. One thing to note – driving with overinflated tires also is dangerous.
Remember, when you’re checking tires, to include your spare. It won’t do you any good to put the spare on if it’s in bad shape.
Finally, rotate your tires if it’s time to do so – it will extend the life of the tires.

Oil things considered

Making sure you change your oil at regular intervals should always be top of mind. But there’s more to an oil change than changing oil. You’ll also want to check the levels of your brake fluid and, of course, your antifreeze.

Get all wiper about it

You’re heading into the season when you’ll need your windshield wipers. So change them to make sure your windshield stays clear of grime, snow and ice. While you’re at it, make sure you’ve got plenty of wiper fluid, too, and that it has a low freezing point.

Blinded by the lack of light

This is a good time to check to make sure your headlights, taillights, brake lights, signal lights, and flashers work property. As Yogi Berra said, “It gets late early out there.” In other words, you’ll likely be driving in the dusk and darkness more.
Check your horn as well, and make sure the heater/defroster is working properly heading into the season.

Power up

Check the battery terminals for problems, and check the battery itself to make sure it’s still good and strong. Chemical reactions that generate electricity are slower when the temperature falls, so it’s important that your battery is strong heading into winter.

Be prepared

Even if you take all these precautions, you could get caught in a jam as the weather gets colder. Review your emergency kit to make sure it has the proper supplies, or put one together if you don’t have one.
Here are some things it should include.

• Flares
• Boots
• Blankets
• Bottled water and high-energy snacks
• Jumper cables
• A jack and spare tire
• An ice scraper
• Flashlights
• A shovel
• A first aid kit
• Duct tape

There are other items you can include as they apply to your location or situation, such as medicines. But the important thing is to be prepared for the worst that can happen. That way, you can handle any smaller problems that occur along the way.

Grand Theft Auto Insurance?

Most people will have to buy an auto insurance policy at some point in our lives. It can be a sobering reminder of adulthood, but it’s an essential protection for one of your biggest investments. For a group of video gamers, the first time they purchase car insurance might be through the Grand Theft Auto V video game.

That’s right, the latest installment of the controversial Grand Theft Auto series, in its online version, allows players to purchase car insurance policies for their virtual cars. If their car is wrecked or stolen, they pay a deductible – much as they would in real life, and the auto respawns.

Criticism of the GTA franchise

For those unfamiliar with the game, here’s why the GTA franchise is controversial. The “game” allows players to immolate criminals and, as they try to climb to the top of the organized crime ranks, they kill other characters, steal cars, drag race, steal money, and commit a plethora of other crimes, including violence against women.
Critics have savaged the game since the original release in 1997. That, however, hasn’t put a dent in its popularity – the latest iteration generated more than $1 billion in sales in its first three days on the market.
Despite the game’s extreme level of violence, GTA V is exposing a generation of gamers to car insurance, which could be a good thing. The added element of the online game teaches players that in order to protect their cars, they need an insurance policy. So will exposing players to car insurance in the game make them more likely to purchase a policy in the real world?

Insurance outside the game

All states require some form of auto liability insurance. Despite that, the Insurance Information Institute (III) estimates that about 14% of drivers in the U.S. are uninsured.
Driving without insurance has some serious real life consequences. If you cause a wreck, you could be personally responsible for paying the medical expenses of the people injured in it. You also could be liable for their lost wages. Plus, you’ll have to pay to repair or replace the vehicles involved – including your own.
Even if you don’t have a wreck, you could end up with hefty fines, a suspended license and a damaged driving record. And when you finally wise up and purchase a policy, you’ll pay much higher premiums. That’s because you’ve had a lapse in coverage, and auto insurance providers hate lapses.

The long-term effects

Some GTA players have noted the oddity that a game filled with so much illegal activity would include something as mundane and real world as auto insurance. While it may seem out of place in a virtual world full of crime, it’s still one of the first games to include an option to buy an insurance policy. While it’s clearly a play for the video game developer, Rockstar North, to make money, it’s also pioneering the inclusion of insurance policies in video games, which could have positive effects on players.
Video games, such as Grand Theft Auto, have been under fire for promoting violent behavior. However, not as much attention has been paid to the potential positive effects. In a 2012 interview with The Wall Street Journal, Joshua Lewis, a computational analyst at the University of California in San Diego, said, “There has been a lot of attention wasted in figuring out whether these games turn us into killing machines.” Lewis, who has studied 2,000 video game players, added, “Not enough attention has been paid to the unique and interesting features that video games have outside of violence.”
Make no mistake, GTA isn’t a pillar of promoting positive behavior, but it’ll be interesting to see if the inclusion of car insurance translates to players becoming more likely to purchase real-world policies. If so, developers could begin including more of these real world aspects across the board. For many, video games serve as an escape from the real world, but the promotion of responsible behavior shouldn’t go unconsidered.

Affordable Auto Insurance Companies - Making the Most of Auto Insurance Rate Quotes

If you are checking out affordable auto insurance companies because it seems as though your car insurance premium goes up every year, you're not alone. This can be frustrating for drivers who maintain a clean driving record, and who know that the cost of their aging vehicle decreases over time. The truth is, an individual policy holder's situation is only one factor insurance companies use when determining the cost of coverage. For example, the average cost of health care, changes in government regulations, and fluctuations in investment markets can all impact auto insurance premiums. In addition, your age, location, and the prevalence of auto theft and insurance fraud can all increase insurance rates, even if the policy holder is doing everything they can to practice safe and responsible driving. 

Furthermore, each insurance company calculates risk using their own individual statistical analysis, so rates may vary widely even when all the contributing factors seem the same. These risk calculations can evolve over time, so a company that has been in business longer may be bringing more past experience to their risk modeling than a newer company. And an insurance company, like any other, also exists to make a profit, and profit goals can influence premiums. 

All these variables are why it's advisable to periodically revisit your auto insurance policy and get competing quotes from other companies, even if it doesn't seem that your driving situation has changed that much. It's possible that you could get an equivalent policy at a much more affordable price from a different company, for reasons that don't have anything to do with your driving record or insurability.  

For people who have decided to seek out affordable auto insurance companies, there are many options. Our website is a great place to start your search for the right insurance policy as you can compare rates for multiple companies at the same time. Do note that the competitor rates provided may not paint the whole picture. It's possible that the coverage you're being quoted isn't 100% equivalent. When comparing rates from different affordable auto insurance companies, make sure you're comparing apples to apples. Read the fine print, and check for any discrepancies. 

Firstly, verify who is insured under the policy. Most standard car insurance policies cover you, members of your household, and other people you authorize to borrow the vehicle. However, some discount insurance policies will exclude high-risk drivers even if they are authorized, or not cover drivers outside your immediate household. While this may be a good way for some people to trim their auto insurance rates, verify that the policy covers everyone you intend it to. 

Another thing to check is the mileage allowance of the policy. Some affordable auto insurance companies limit the annual mileage allowed for some vehicles, so verify that those limits are compatible with your driving habit and anticipated needs. And some policies exclude damages if the vehicle is used for any business purposes, such as delivering newspapers or pizzas. If you plan to use your car for any business-related driving, read the fine print and make sure you're covered. 

Also, note that the policy may authorize your insurance company to run more driving record checks. Some discount policies check your driving records every six months, instead of the once a year or even two years that many preferred drivers enjoy. 

Finally, try to anticipate your needs over the coverage period and account for any changes you can predict. For example, are you a few months away from having a teenage driver in the household, or paying off a big debt? Are you anticipating moving or retiring soon? Those things will affect your auto insurance rates, as may affect your coverage needs as well. As long as you're comparing rates, get quotes that include these hypothetical changes and take the future into account before you make your selection. 

So before you jump at the lowest rate quote, read the policy terms carefully and make an informed decision. Many affordable auto insurance companies can offer you a policy that is perfect for your needs at a much lower rate, but you'll want to know exactly what is (and isn't) covered before you file a claim, to avoid any unpleasant surprises.

What Happens When You Make a Car Insurance Claim?

One of the many advantages of doing business with SafeAuto is that all of our car insurance claims are handled by our in-house adjusters. They make sure you have the answers you need when you need them. In short, it’s just a more efficient way of doing business.
We make sure that all of our car insurance claims are handled quickly by enlisting the help of independent appraisers. No matter where you are in the United States or Canada, we can have a professional appraiser available to see your vehicle fast. Once the damage has been appraised, the body shop of your choice can start the repairs immediately.
While of course speed and efficiency are important when processing your car insurance claim, we’re equally dedicated to containing costs and giving you the best possible value for your money. This is why SafeAuto Insurance aggressively investigates each car insurance claim to determine whether or not it’s fraudulent. By doing so, we’re able to keep our car insurance premiums as low as possible. And to anyone who lives on a strict budget, this means a lot.

If you ever wondered what happens when you make a car insurance claim, hopefully we were able to give you a better understanding with this blog post. We try hard to make the car insurance claim process as seamless as possible and have an entire team of dedicated associates working hard to make sure this happens.
If you need to file a car insurance claim, give us a call at 1-800-SafeAuto and one of our experienced representatives will help you through every step of the process. For more information on our rates, or for a free car insurance quote, visit us at our website at www.safeauto.com.
For an exact definition of a car insurance claim, visit the link below:
http://www.investopedia.com/terms/i/insurance_claim.asp

new Auto insurance trend

Usage-based insurance—which bases discounts on your personal driving habits, instead of on how people like you drive—is already widely adopted in Europe and is on its way to becoming the new norm in the United States.
So is it for you?
To answer that, let’s first talk about the kind of driving that matters when you have usage-based insurance.
At Progressive, the driving habits that count toward your discount are the ones that lower your accident risk, like:
• Minimizing your daily mileage
• Avoiding slamming on the brakes
• Staying off the roads between midnight and 4 a.m.
This kind of driving might come naturally to you. In fact, more than 70 million U.S. drivers already practice all three habits, according to a survey conducted by Harris Interactive.
The other thing to consider with usage-based insurance is how much exactly you might save and whether it’s worth switching your insurance. Generally (and here at Progressive), you can save up to 30 percent.
If you’re still on the fence about usage-based insurance, or switching your insurance, take our usage-based insurance program, Snapshot®, for a 30-day test drive and preview your potential savings.
Hear from Eric, of Baltimore, who tried usage-based insurance and saved 18 percent:

Gender gap opens over car cover costs

Figures published this week show a new gender divide has opened up over car insurance prices.
Young women have been hit with huge rises in the cost of motor cover this year.
At the same time, premiums for men aged between 17 and 20 have fallen dramatically.
The latest Confused.com/Towers Watson Car Insurance Price Index shows that women in this age group are now paying 9 per cent more than this time last year.
Men, on the other hand, have benefitted from price falls of almost 30 per cent.

Effects of law change

These contrasting fortunes have been blamed on a new law which has made it illegal for insurers to charge men and women different rates based solely on their gender.
Since last December, when the European Gender Directive legislation came into effect, insurers have been effectively equalising the premiums they charge to male and female motorists.
Until then, men – especially those under the age of 25 – had faced much higher insurance costs than women, as insurers’ own figures tended to show they had a much greater risk of being involved in accidents and making claims.

Ignoring the risks

But providers can no longer use this statistical evidence when setting premiums.
Instead, men’s and women’s insurance prices are being brought into line with each other, with the result that men benefit from falling costs while women face significantly higher premiums than before.
Across all age groups, the research found, premiums have fallen sharply over the past two years.
From a high of £858 in the middle of 2011, today’s typical annual premium is £652, a fall of almost a quarter.

Good news ‘not felt by all’

Gemma Stanbury, head of car insurance at Confused.com, said: "It’s great news for most motorists as their average premium is now £206 cheaper than it was two years ago.
"However, this good news isn’t felt by all as the most recent results from the Confused.com Car Insurance Index reveal that women have experienced the greatest increases to their car insurance premiums.
"As a result, women aged between 17 and 20 are now facing average prices of £1,862 for their car insurance.

Prices levelling out

"At the opposite end of the spectrum, their male counterparts are enjoying huge price decreases of 29.2 per cent as the industry attempts to level out car insurance prices."
The price falls for men mean their annual premiums have fallen from an average of £3,314 in 2012 to £2,345.
Young women have fared worse in some parts of the UK than others, the figures show.

Gender differences disappearing

Under-21s in Northern Ireland will now pay an average of £2,156 a year, up almost 15 per cent on a year ago, for example.
Across all age groups, the gender gap in motor premiums has almost vanished.
The average annual male premium is now £665, compared with £635 for women.
This £30 difference is dramatically less than the £112 gap recorded this time last year, when the typical male and female premiums were £807 and £695 respectively.

Car insurance costs fall by 24%

The cost of car insurance has fallen by almost a quarter from record highs two years ago, new research has found.
Millions of drivers are benefitting from the cheaper premiums that have resulted from a number of factors.

Benefits of pay-as-you-drive

These include greater take-up of pay-as-you-drive telematics insurance policies, as well as reduced costs associated with personal-injury claims and new rules on prices for men and women’s policies.
The Confused.com/Towers Watson Car Insurance Price Index shows that the average comprehensive premium between June and September this year was £652.
This is 24 per cent lower than the peak of £858 recorded in June 2011.

Contrast with inflation rate

Motor premiums have dropped 14 per cent in the past 12 months alone, the figures showed.
By way of contrast, over the past two years prices in the UK economy as measured by the Consumer Prices Index have risen by about 6 per cent.
Currently, the CPI is running at 2.7 per cent a year, according to the most recent official statistics.

Winners and losers

Some groups of motorists have fared considerably better than others, however, when it comes to price changes.
Those aged between 40 and 60 have seen typical premiums fall by more than 15 per cent in the last year, for example.
And young men in Scotland now face costs lower than at the start of 2007.
But the picture for many women who have only recently passed their driving test is not so rosy.

Young women face price hikes

Those aged between 17 and 20 have in fact seen their premiums rise by just over 9 per cent since this time last year, while their male counterparts face costs almost 30 per cent lower.
This is largely due to the effect of new rules over setting insurance prices according to gender.
Since last December, it has been against the law for providers to charge men and women different rates because of their gender.

Men ‘more risky’

In the past, men – especially those under the age of 25 – have faced much higher premiums because statistics suggested they have been more likely to be involved in accidents and make claims.
But following intervention by the European Union, insurers are no longer allowed to reflect this with higher premiums.
As a result, the gap between male and female premiums has been narrowing over recent months, which means cheaper rates for men but higher prices for women.

Black box benefits

Young people have been increasingly opting for a type of car insurance called telematics.
This involves a black-box measuring device being installed in the vehicle, with premiums set according to how sensibly the policyholder drives.
This is thought to have played a part in falling premiums, as is a recent crackdown by the Ministry of Justice on the fees that are paid by insurers when dealing with personal-injury claims.
Gemma Stanbury, head of car insurance at Confused.com, said: "In the last three months we’ve seen a significant reduction in car insurance prices across the board, seeing premiums drop by an average of 13.9 per cent year-on-year.

‘Welcome news’

"Falling car insurance premiums are welcome news for motorists who may well be feeling the pinch as a result of rising rates of inflation."
Stanbury added that drivers needed to be proactive to ensure they were feeling the full benefit of these premium falls.
This means checking which insurer offers the best rate.
She said: "We would recommend that motorists take advantage of these latest price drops, not just accept their renewal price."