No Down Payment Car Insurance – Don’t Get Scammed!

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How to Keep Your No Down Payment Car Insurance Safe from Scams

The aftermath of a car accident is pretty bad to deal with. You have a wrecked, possibly totalled car on your hands, injuries, a claim with your insurance company, and more. There is no way in which this situation could be made any worse, right? Well, that’s where you’re wrong. You know your amazing low down payment car insurance policy? It could be at risk. Paying a little less to get cheaper car insurance may not be worth it; read on to see why.

Advantages of No Down Car Insurance

The benefits of low or no down payment insurance are many indeed. You can save upwards of 20% of your total insurance policy cost, for one. Other benefits include:

  • Easier to manage your payments

Since you don’t have to pay a deposit along with your initial payment, your costs are reduced. This makes it far easier to fit all those premium payments in your monthly budget.

  • Less confusing

You don’t have to pay a deposit with this type of insurance policy, so you no longer have to perform complicated calculations to figure out the payments you have to make. You can make equal payments each month without worrying.

Questions to Ask Before You Buy

If you’re considering getting a cheap car insurance policy such as one without a down payment involved in the payment, you’re in for a good time. However, you should always do your homework before getting an insurance policy regardless of how good it seems to be. Ask these questions to start off:

  • Are there billing fees, processing fees, and other fees added to the policy price?
  • Would it cost much more to pay three, six or twelve months in advance?
  • Are there discounts for paying upfront?
  • Can I avoid fees using some strategies?

Even low down payment insurance policies have their pitfalls if you don’t look hard enough. Do your research before buying the cheapest and best.

Now that you have your awesome new low down payment car insurance policy, your goal should be to avoid ruining the deal you have! This is why you need to avoid scams for car insurance. Below are some of the most common scams in the industry and how to avoid them.

Some Accidents Don’t Just “Happen”

In some situations, accidents aren’t actually events that happen by accident. They are coordinated, planned efforts to take you for all you’re worth on that sweet no down payment car insurance policy of yours. That’s right – it is very likely that you could become the victim of an auto insurance scam.

In the US, fraud is one of the most common financial crimes. According to the statistics, it is the second most common, with tax evasion being the first. Almost 20% of all injury claims after a collision, and 10% of all damage claims, are the result of a planned car accident by criminals looking to make an easy buck.

The worst part about these scams isn’t even the fact that they are criminal acts. You know that amazing low down payment car insurance plan you were looking at? An accident on your driving record is a black mark that will drive the price of the policy and your premiums up by a significant amount. Getting this cleared from your record is an arduous process that can cause many stress related conditions to arise in your life.

Insurance companies all over the world pay millions in settlement fees in claims that aren’t even real. These claims are usually far easier to push through because car accidents are usually reported on after they have happened, which makes it hard to have a clear idea of what exactly happened prior to the actual collision.

The Five Main Types of Insurance Scams

If you want to keep that no money down car insurance policy you’ve got your eye on, avoiding getting scammed is a must. Here are five of the most commonly used types of scams by insurance fraudsters around the world. Learn them and know how to spot them for the best possible experience with your purchase of a good insurance policy.

The Rear Ender

This is possible one of the most common insurance claims that turn out to be fake. It is also one of the most dangerous, at least for you. The rear ender is a staged rear ending. It is also known as a crash for cash in layman’s terms. How it works is actually very simple.

The person committing the scam will find a way to follow you and get in front of your vehicle at some point during your journey. This will typically be in busy traffic in order to provide the scammer with an ironclad alibi. It can also be done before traffic lights, an intersection, or even the off ramp of a freeway. Once they have gotten in front of your vehicle, they will slam the brakes on at the opportune moment. The result? You crash into them from behind.

If you went to driving school, you probably know the law. In every state, or close to it, a rear ending is deemed the fault of the driver behind, not the person in front. In this case, that driver will be you. Since it is “your fault”, damages for the accident will be paid for using your insurance policy when the claim is filed. Sometimes the scammer will also fake neck pain or a slight strain to try and get some medical expenses out of the insurance payout too.

Avoiding the rear ender is easy enough. You must always keep a sizeable space between your car and the car in front of you. Make sure that you aren’t tailgating anyone. Look at the traffic in front of the car ahead of you at times so you can slow your speed to match it. Keep an eye out for erratic, suspicious driving on the part of the driver ahead too.

The Wolf in Sheep’s Clothing

This one is a more complex scam. Imagine that you have been in an accident and are stuck waiting for the police to arrive, along with your tow truck from the company. The accident itself may have been legitimate, but the scam arrives in a different form. The scammer will approach you personally while you wait on the side of the road for the authorities.

These people usually find out about accidents from contacts at tow truck companies or auto repair companies. They may approach you in person, or give you a phone call. They will tell you that they are a representative of the insurance company, or that they are a consultant. What they want to do is get you to use the services of a particular company for your damages. This could be a certain hospital for your injuries, a certain repair shop for your repairs, or even a certain lawyer for any injustice committed.

None of the people they tell you to see are real, licensed professionals. Every single one of these suggested contacts are fraudulent. The end result of any of this is that you will be asked to provide your personal information, including your insurance reference number and other details. These will be used later to file fake insurance claims in your name.

To avoid this scam, make sure that all business you conduct after an accident is done with the legal, licensed representative of your insurance company and the company of the other driver. Do not trust anyone approaching you soon after an accident unless you can verify their identity.

The Soccer Player

You might be wondering what soccer has to do with insurance scams. If you have ever seen a game of soccer, you know how the referee system works. A typical soccer player will drop to the ground screaming bloody murder if so much as a feather touches them, in hopes of getting a free kick out of the ordeal. The same principle is used in this scam.

When you get into a collision with the scammer, in whatever way they feel fit, see if the other driver immediately claims that they are injured. These injuries won’t usually be serious. They will complain of having back pain, whiplash, and other injuries that sound made up. The second they get to a hospital, they will file a claim with your insurance company for medical expenses. The injuries they describe are usually those that won’t show up on medical records or X-rays, so you will find that some scammers work in tandem with quacks, employees at the hospital, and other contacts.

A good way to identify this scam is to look at the other driver. If they are completely fine until the authorities arrive, and then start moaning and sobbing about their injuries, it is probably a scam. You can avoid this by filing a police report whenever you have an accident. Filing a report means that the police will note down every little detail about the damage caused to both vehicles. If the report says the cars only suffered minor scratches, there is a high probability that the insurance company will not believe the medical claims of the other driver.

The Ghost of Accidents Past

This is another good scam for getting money out of your no down payment car insurance policy. There you are, minding your own business, when you find out that someone filed a claim for personal injury related to the accident. The only catch? There was no one else in the other car, other than the driver. Spooky, right?

A situation like this is known to the insurance industry as the Phantom Victim. It can be done by a scammer right after the initial accident or later as a way of trying to get more out of your insurance company. The con artist will try to convince the insurance company that there were other people in their car that day or night, and that these people suffered injuries too. In a world where claims can be filed online, the scammer doesn’t even need to be present to prove that they are the “other person”.

Preventing this scam is almost impossible unless you can put a trace on the other driver. However, you can thwart the efforts to leech you for more money. When you are taking down information right after the accident happens, count how many passengers are in the other car. Take pictures of the other car, the passengers in it, and the scene of the collision. If you smell a rat, report it to the insurance fraud department in your state.

The Wrong of Way

Rear ending isn’t the only way in which you can be forced into an accident. A con artist can lure you into a trap in a multitude of ways, putting your brand new low down payment insurance policy at serious risk. One of these situations is also called the drive down. You’ll be at an intersection where another car has the right of way. They will pretend to be friendly and wave you forward. You will move into the intersection thanking the world for such nice drivers. Seconds later, that stranger will ram into your car head on.

When you argue later that the other driver waved you on, they will deny ever having asked you to go ahead. You will be liable because technically, you broke the law! This same situation can be emulated at a parking lot, where two cars at the same spot will have a collision. One last type is the side swipe. In this case, the con artist will ram you the second your wheels leave your lane for the one next to you when you are turning using the inner lane at a turn zone of an intersection.

The only way to avoid any of these scams is to be vigilant on the roads. Always follow the rules of the road, regardless of other seemingly trustworthy drivers giving you the right of way. Observe all the rules as they were taught to you, and you will never be involved in this type of dispute! Even better: you get to keep your no down car insurance policy intact!

If you decided you don’t want no down-payment car insurance, you can use our quotes tool : Find car insurance near me.

No Down Payment Car Insurance – Don’t Get Scammed!
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