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