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Auto Accident Scam Costs Consumers Millions

29 September 1998

Auto Accident Scam Costs Consumers Millions

    OMAHA, Neb., Sept. 28 -- You're driving home after work.  The
traffic is moving steadily and you're well within the speed limit.  Suddenly,
the driver in front of you brakes for no apparent reason and -- wham -- you're
the victim of automobile fraud, a growing white collar crime that costs the
nation about $14 billion each year.
    In this particular scam, the driver in front of you purposely braked with
the intention of causing a collision.  Such "caused accidents" were among
several topics discussed at a recent "White Collar Crime" seminar hosted by
Mutual of Omaha Insurance Company in Omaha, Neb., for regional law enforcement
officers.
    With automobile fraud costing the average American family an additional
$165 in annual insurance premiums, Mutual of Omaha and the Nebraska Department
of Insurance offer these consumer tips to avoid caused accidents.

    --  Defensive driving is the best protection.  When driving, look beyond
the car in front of you.  If you see traffic slowing, slow down with it.
Don't wait for the car directly in front of you to brake first.
    --  Allow ample space between your car and the car ahead of you, so there
will be enough time to react to a sudden stop.  Under ideal conditions, your
car should be one car length back for every 10 m.p.h. in speed.
    --  If you suspect you are being set up, slow down until you've evaded the
cars in question, or pull off the roadway.

    But it's also what you do after an accident that can keep you from being
taken for a ride.  The name of the game is to stay alert and pay close
attention to details.

    --  Count the number of passengers in the other car and get everybody's
name, telephone number and driver's license number.  Sometimes, people who
were not in the car will file claims.
    --  Make note of the damage to the other car.  Perpetrators may crash the
same car dozens of times and may try to pin previous damage on your accident.
    --  Carry a disposable camera in your glove compartment.  Take as many
pictures of the other car and its passengers as possible.  Having those
pictures will discourage con artists from filing fraudulent claims.
    --  Be skeptical of witnesses who eagerly rush to the scene and support
the other driver's version of what happened; they may have been placed at the
scene ahead of time.
    --  Call the police even if the damage is minor and the people in the
other car say they are not hurt.  A police report makes it harder for the
scammer to claim extensive auto damage and bodily injuries later on.
    --  Immediately inform your insurance agent of the accident.  Also,
closely check your insurance bills to see if your premiums significantly
increase.  If that happens, demand an explanation from your agent and do not
hesitate to challenge the report.
    --  If you suspect you have been the victim of a scam, call your state's
insurance department or local law enforcement agency.
    Mutual of Omaha Insurance Company, with headquarters in Omaha, Nebraska,
is one of the nation's largest providers of individual health and accident
insurance.