Coalition highlights “frauds to watch for” in 2005

The U.S. Coalition Against Insurance Fraud has released its list of “frauds to watch out for” in 2005.
Among the top scams consumers should be on the lookout for are bogus airbags the CAIF says there have been instances where insurance companies were billed for replacement of an airbag following a collision but the airbag cavity was found to contain old rags or even beer cans. Another is fraudulent agents who ask you to write an insurance check to them, rather than to the insurer directly, but never pay the premiums, so the supposed policyholder is left without coverage.
Unscrupulous agents can also “slide” unwanted coverage into a policy, so buyers should read policies carefully, the CAIF warns. And the coalition warns against offers of “free” windshield replacement, made when there is actually no damage to the windshield itself, often by individuals who approach people at car washes, gas stations or other public gathering places.
And again this year, the CAIF is putting out a warning about staged accidents, with innocent drivers maneuvered into car crashes so that fraudsters can make false injury claims. Two common ploys are for fraudsters to “stop short” in front of you, or for them to wave you out of a parking space and then pull forward anyway.
The full list of frauds consumers should know about, and some tips on avoiding them, are at www.insurancefraud.org.