| Scams affiliated with car insurance can take | | | | |
| many different forms, and they all can cost | | | | 3. Check to see if the tow truck service has |
| you a lot of money. All policyholders end up | | | | a contract with local, county, or state law |
| shelling out lots of money for overly priced | | | | enforcement agencies. |
| or improper payments associated with an | | | | |
| insurance claim. This means that you end up | | | | 4. Listen for obvious red flags. Does the |
| forking over big money to satisfy somebody | | | | driver recommend a particular repair shop |
| else's greed. By being an educated consumer, | | | | without being asked? If he does, this might |
| you can help minimize these scams and help to | | | | indicate that he has a financial interest in |
| keep car insurance premiums from rising | | | | that repair shop. |
| through the roof. In this article, we will | | | | |
| provide tips on how to avoid car insurance | | | | 5. Be sure to read the fine print on the |
| referral scams and also help get rid of them. | | | | contract or service invoice that the tow |
| | | | truck driver asks you to sign. |
| How do car insurance referral scams work? | | | | |
| | | | 6. Ask the driver to take your car to a |
| A tow truck driver may be paid a finder's fee | | | | secure location where the insurance adjuster |
| by a lawyer to refer personal injury car | | | | or appraiser from your auto insurance company |
| accident victims to them. This is illegal. | | | | can assess the damages. |
| A lawyer may be on the payroll of a health | | | | |
| care provider to refer personal injury | | | | 7. Call your auto insurance company right |
| accident victims to them, and this also is | | | | away for information on towing services and |
| illegal. A tow truck driver may be paid a | | | | where to take your car to be repaired. |
| finder's fee by an auto body repair shop to | | | | |
| have damaged cars brought there. This too is | | | | 8. Look into having your car towed to a |
| a crime. In the insurance business, these | | | | preferred auto body repair shop. Some auto |
| tow truck drivers are called "chasers." It | | | | insurance companies use preferred repair |
| may be unlawful for a tow truck operator to | | | | shops where they have a mutual agreement that |
| refer an accident victim to a particular | | | | guarantees that your car will be fixed to the |
| repair shop without being asked and | | | | highest possible standards. For more |
| especially if they receive a finder's fee for | | | | information, call your auto insurance |
| making the referral. | | | | company. |
| | | | |
| Many auto body repair shops control or own | | | | Who can I call to report auto insurance |
| "chasers." It is up to the insurance | | | | fraud? |
| companies to choose not to do business with | | | | |
| these shops. If the insurance company does | | | | If you believe you are a victim of auto |
| not recognize the shop to where your car has | | | | insurance fraud, report the incident to your |
| been towed, your car may need to be taken to | | | | state's insurance commissioner. |
| another auto body repair shop. Before this | | | | |
| occurs, you may need to pay for the towing | | | | Lawyers |
| fee, storage, and perhaps other | | | | |
| administrative fees. These fees can add up | | | | |
| to the thousands of dollars, and your auto | | | | |
| insurance may not cover everything. If you | | | | 1. Ensure that the lawyer to whom you are |
| do not wish to pay up, the auto body repair | | | | referred is licensed to practice law in your |
| shop can detain your vehicle in accordance | | | | state. |
| with state laws and charge you storage and | | | | |
| towing fees, and place a lien on your car and | | | | 2. Ask them up front what their rates are and |
| sell it to recover their fees. To recover | | | | what their payment plan is for your situation |
| these referral fees, lawyers, tow truck | | | | and how it will benefit you if you hire their |
| operators, doctors and hospitals, and auto | | | | service. |
| body repair shops will most likely inflate | | | | |
| their bills. Ultimately, it is you, the | | | | 3. Check with your state's bar association |
| policyholder that ends up paying through the | | | | for any complaints about them. |
| wazoo. | | | | |
| | | | Health Care Providers |
| What can you do to combat auto insurance | | | | |
| scams? | | | | |
| | | | |
| Be well informed and educated. If you need | | | | 1. Ask if they are licensed to practice as a |
| the services of a personal injury lawyer, tow | | | | health care professional in your state. |
| truck operator, or doctor, know everything | | | | |
| there is to know about your rights as an | | | | 2. Ask how much they charge for their |
| accident victim. Here is some of advice: | | | | services and if they will accept payment from |
| | | | your health or auto insurance companies and |
| Tow Truck | | | | not charge any more fees beyond that. |
| | | | |
| | | | 3. Check with the health care provider's |
| | | | state licensing board to see if there have |
| 1. Ensure that the tow truck service has a | | | | been any complaints lodged against them. |
| legal license to operate before you hire | | | | |
| their service. | | | | There are many forms of consumer fraud going |
| | | | on nowadays. It is up to you to educate |
| 2. Check to see if the tow truck service is | | | | yourself on what is or is not legitimate. |
| associated with a reputable company such as | | | | Hopefully, our advice will minimize your |
| Triple A (AAA) or other automobile | | | | chances of becoming a victim of auto |
| organization. | | | | insurance referral fraud. |