What are some Car Insurance Scams In South Africa?
- Deliberate car wrecks
- False claims for repairs
- Increased car insurance premiums
- The bad Samaritan
Car accident scams are on the increase in South Africa.
While these scams can be quickly spotted by professional insurance detectives, unsuspecting motorists are easily fooled.
Common Car Insurance Scams In South Africa
The swoop – Car Insurance Scams In South Africa
One of the most common scams is known as the “swoop”.
Scammers look for small gaps in traffic and then swoop into another lane.
The oncoming vehicle cannot avoid a collision.
The law states that the driver who collides with a vehicle ahead of him/her is responsible for the damage.
The only way to avoid this scenario is to maintain a good following distance between your car and other vehicles on the road.
The hit-and-run – Car Insurance Scams In South Africa
This occurs when a dishonest motorist, who has previously damaged his/her vehicle, claims that the driver responsible for the accident fled the scene.
Although the dishonest motorists could be charged with fraud, it is almost impossible to prove his/her allegation unless there are CCTV cameras operating at the scene of the accident.
The wave in – Car Insurance Scams In South Africa
Dishonest motorists will “wave-in” another vehicle on a busy street in an attempt to cause an accident and claim insurance money.
They will deny that the “wave-in” took place, forcing the unsuspecting motorists to lodge a claim for damages incurred in the accident.
The side-swipe – Car Insurance Scams In South Africa
When there are two lanes of turning traffic, a scammer will drift across into the unsuspecting motorist’s lane, side-swiping the vehicle.
The scammer will then blame the unsuspecting motorist and receive the insurance money.
The scammer causes a car accident for which you the blame.
Your insurance company will pay for the scammer’s damage, but he will claim for damages that are much higher than they actually are.
On occasion, scammers work alongside auto repair shops to get false damage statements and incorrect repair estimates.
Although the general cost of vehicle maintenance and repairs is largely to blame for increases in insurance premiums, the escalation in scam claims is a contributing factor.
Scammers end up with cash in their pockets and even though the money is paid out by your insurance company, it’s you who pays the price in the end when your premiums are increased.
The bad Samaritan
Beware the bad Samaritan.
After an accident someone approaches, offering assistance.
The person will claim to be a doctor, lawyer or even an insurance company representative.
The ruse is simply to obtain insurance information to enable the scammer to file a false claim, using your details.
Life is fraught with scams to steal your hard-earned money.
Car insurance scams are no different and, unfortunately, are very much on the increase in South Africa.
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