I'm a lawyer - how to avoid car insurance scams that could cost you up to $10,000
A PERSONAL injury lawyer has offered some advice on how to avoid car insurance scams that could cost up to $10,000.
Daniel Murphy, who has been a member of the Florida Bar since October 2015, has advised Floridians that insurance could get complicated in The Sunshine State.
He explains via Justice Pays: "Florida is a 'no-fault' state, which in this case means that $10,000 is automatically paid regardless of who is at fault when a car accident occurs.
"However, scammers and fraudsters try to game the system and cheat drivers and insurance companies out of that insurance payout.
"Insurance fraud can cost up to a billion dollars in fake claims, and in Florida, people have to be especially careful of these scam attempts to create an accident."
According to Murphy, some drivers attempt to trick Florida drivers into scam accidents through panic stops, exaggerating claims, insurance agent fraud, and towing scams.
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Panic stops are when scammers look for distracted drivers on the road, like someone looking at their phone.
They then purposely move their car in front and stop abruptly when the driver isn't paying attention, he explains, noting that the scammer will claim the distracted driver was at fault.
Murphy adds: "Drivers in this situation, especially if they know they had their phone out at the time, will tend not to challenge this assertion and go along with the insurance payout process."
And exaggerated claims are one of the state's most common scams, he says.
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"In some cases, drivers will exaggerate the damage to a vehicle to secure more money than is necessary to conduct repairs," Murphy writes.
"In Florida, this scam has even been organized at the business level."
Third, insurance agent fraud is possible when agents "abuse" their trust and may lack credentials, the lawyer says.
"One of the worst scams such people can achieve is fooling someone into having insurance they don’t have," Murphy continues.
"People pay their premiums, but the scammer is collecting the payments, not the insurance company."
In other cases, Murphy says that a scammer may add additional insurance costs that are unnecessary, something he describes as "sliding."
And lastly, if a towing company that no one has called arrives at the scene of an accident and gets away with a vehicle, the "bandit towers" may hold the vehicles until additional payments are made.
Murphy said that this usually occurs when those involved in the accident assume their insurance company or someone else called the tow service.
He urges anyone reading his article who has been injured in a car accident and is not at fault to contact a car accident attorney.
"Make sure you get professional legal advice to get what you’re owed," he said.
Meanwhile, how you drive is one of the main factors in determining the price of your insurance premiums.
Good drivers who have not been involved in any accidents can pay about 40 percent less than drivers with a poor record, WalletHub reported.
If you are in an accident, the insurance company is likely to charge you more.
The way they see it, if the wreck was your fault, you're not a great driver and might get in another accident.
Read More on The US Sun
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And even if it was not your fault, the company could still use it to justify inflating your prices.
Here are four other ways you could be driving up your car insurance bill – and it could be costing you thousands.
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