3/30/2011 3:33 PM ET|
Beware bogus 'help' after a wreck
Unsolicited offers of assistance, including rogue tow trucks and medical help, can be warning signs of insurance fraud. If you didn't request it, reject it.
A tow truck shows up at an accident scene before anyone calls for help. A man in a convenience-store parking lot offers to inspect and repair your windshield for free. A medical clinic representative tries to talk you into seeking treatment after a car accident.
At first blush, such offers of assistance may appear serendipitous, but they can be warning signs of insurance fraud. The National Insurance Crime Bureau is warning consumers to be wary of unsolicited offers for services that are supposedly covered by auto insurance.
"Whenever you get crazy weather, you get a rash of insurance claims later," says NICB spokesman Frank Scafidi, referring to blizzards that swept the across the eastern third of the country a few weeks ago.
If you didn't request it, reject it
Some scoundrels take advantage of an unfortunate situation to milk money out of people's insurance companies.
Their first step is to solicit unwary customers with an aggressive sales pitch.
"That seems to be a common thread throughout these scams," Scafidi says. "It's why we like to say, 'If you didn't request it, reject it.'"
Insurance companies referred 70,295 questionable claims to the NICB for closer review and investigation in the third quarter of 2010, a 12% increase over the same period in 2009, according to the most recent figures available. Each questionable claim that is referred includes one or more indicators of insurance fraud.
Among the questionable claims for auto insurance were 1,700 referrals for suspected auto-glass fraud through the third quarter, a 511% increase from the same period in 2009.
Insurance fraud drives up car insurance rates for everybody. The bureau estimates that property and casualty insurers, including car and home insurance companies, lose $30 billion a year from scams.
Cracks in auto-glass repair offers
Some auto-glass repair technicians are going door-to-door and approaching people in parking lots and gas stations to solicit business. They offer to do free inspections and bill car owners' insurance for repairs. Some may be legitimate, but insurers speculate some are con artists who talk customers into replacing windshields when only simple chip repairs are necessary, or charge inflated rates for slipshod work. Safety is a big concern: Windshields must be installed properly for the airbags to deploy and to protect the car in a crash or rollover.
Referrals for inflated towing and storage bills also rose in the third quarter, to 466 from 236 in the third quarter of 2009, a 97.5% increase, according to the NICB.
Rogue tow trucks scout for accidents
Amid the hard-driving competition among tow-truck companies, some dishonest operators remove cars from accident scenes without telling the drivers where they're taking them. By the time you track down your vehicle, hefty storage fees have accumulated.
Some tow-truck operators also pressure you to have your car taken to particular body shops or sign agreements to prepay exorbitant fees.
Legal and medical scams
The number of suspicious claims referred to the NICB after car accidents totaled 1,013 through the third quarter of 2010 -- a 24% increase over the same period in 2009.
- Calculator:How much car can you afford?
In these scenarios, representatives of attorneys or medical providers approach people involved in accidents and pressure them into seeking representation or treatment. In some instances, they call the accident victims and pretend to be from their car insurance companies.
Attorneys and medical providers who are running scams work together to pad bills to insurers, using innocent consumers as pawns for insurance claims.
Ignore offers from people you don't know
Not everyone who makes unsolicited contact with people after car accidents is a scam artist, Scafidi says. "But you should put your guard up," he says.
The NICB recommends that you work with your insurance company if you have an injury claim and that you avoid selecting an attorney or medical provider based on advice from people you don't know.
In addition, understand your car insurance coverage before you have to make a claim. Talk to your insurer or agent if you have any questions.
This article was reported by Barbara Marquand for CarInsurance.com.
VIDEO ON MSN MONEY
Recently, we were involved in a Motor Vehicular accident close to Centerville on 635. We slowing drove the car to the Trophy Nissan collision center gate. As it was a Sunday, the gates were locked. we then called a wrecker service A guy from Big Bass Towing Company came to assist us. We asked him if he could tow it to the Mercedes dealers at Ewing body shop. He declined, saying he was too busy and that it would be less expensive to have the car repaired at Nissan. We took his advice and decided to have the car repaired by the Nissan dealership.
The tower asked us if we had insurance we said yes. We asked the guy about towing rates and he said it was $85.00 for hook-up and $3.00 for every mile (see attached). He loaded the car on to the tower, opened the gate, and parked the car at the Nissan Body shop holding area, which was only a few steps from where the car was parked. The entire process took about 15 minutes.
Soon weI found out that special tools were needed to work on a Mercedes and therefore Nissan was not able to repair my vehicle. This meant that I would have to have my vehicle towed to the Ewing dealership, which is where I wanted it to be taken in the first place. When I went back to pick up my car from the Nissan dealership, they would not release the car without a payment of $225.00. The Nissan agent informed me that these were the towing company charges and made a comment that it seemed to be an "exorbitant amount."
Big Bass Towing Company quoted me a rate of $85 to load the car and $3.00 for every mile. In my case, the tower loaded the car and moved it only a few feet as I was already at the Nissan Body shop gate.
I have been charged almost three times the rate quoted. My insurance will pay only $40.0 towards towing charges and $225.00 is an excessive amount of money for the amount of work that was done.
I Emailed to the owner (Gary Martin) of Big Bass company but he refused to respond to repeated emails. Finally I sent the towing company a certified letter about waiting for a response, the owner Gary Martin called me, He, Mr. Martin was hostile and stated that they had a contract with Nissan and with the Mesquite Police. Therefore they had to charge what they did to pay everyone. He said different people were charged different rates. He seemed angry and asked me if I knew how much a tow truck cost. He then hung up saying he would see me in court.
What I am trying to bring to light is the principle. Towing companys are ripping innocent people off for whatever they can get out of them. I would like to see the towing company pay for their dishonest business practice.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Get your emergency fund together now if you want to avoid stumbling over costly surprises in the future.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'