By some estimates, as many as 15% of all insurance premiums are used to cover claims that are fraudulent.

When your employees are involved in an accident, your premiums go up, and, in some cases, it reflects on their driving record. And that’s the case even when the accident is caused by auto frauds.

That is unless you have trained your employees on how to spot these common fraud schemes from the get-go. With that knowledge, they can avoid a staged car accident and get the evidence to prove it.

Keep reading to learn more about the common tricks of auto frauds and how to avoid them.

Most Common Accidents Staged by Auto Frauds

Auto frauds have taken to staging accidents. They do this in order to submit insurance claims for damage to their vehicle and based on fake injuries.

Below are some of the most common staged car accidents. Train your employees on what to look for while they’re on the road.

1. Rear-End Collision

In general, if you hit someone from behind, the accident is considered your fault. It follows that, if auto frauds can get you to hit them from behind, they’ll have an easier time blaming the accident on you.

They might cause a rear-end collision by swerving in front of you quickly and then stopping suddenly. They might also resort to what’s called a panic stop.

In this common fraud scheme, they have a car full of passengers and the passengers in the rear are watching you intently. If you take your eyes off the road for a quick second, they’ll inform the driver to stop suddenly, causing you to rear-end them.

2. Right of Ways

In this situation, also known as a drive down, the driver with the right of way motions to let you make a left turn, to merge, or to change lanes. Once the innocent driver goes to make that turn, merge, or lane change, the driver speeds up and causes a collision.

In this case, you’re at fault because that driver had the right of way. And auto frauds will deny they ever motioned you to go.

3. Swoop and Squat

This is a coordinated car insurance scam that involves two vehicles driven by auto frauds. The first car, called the swoop car, will cut off the second car, known as the squat car. When that car breaks suddenly, the innocent victim slams on their breaks and rear-ends the vehicle.

4. Side Swipe

This scenario involves an intersection with two left-turn lanes. Auto frauds will attempt to sideswipe an innocent driver while they’re making the turn. Later, they’ll claim that the innocent drifted into their lane while making the turn.

Tips for Avoiding Auto Frauds

Auto frauds have become sophisticated in their methods, but there are ways to avoid them.

1. Drive Safely

This goes without saying, but you should always be driving safely. Always leave a car’s worth of distance between your vehicle and the next and never tailgate. If you are involved in an accident, make sure you call the police immediately.

2. Take Photos

If you’re able after an accident, you should take photos of the scene. That means taking photos of both vehicles as well as the surroundings.

Even better than taking photos is installing dashcams on your vehicles. This way, there is video evidence of the accident and it will be easier to pinpoint who was at fault.

3. Work With Companies You Trust

Car insurance scams make their money through insurance fraud and, sometimes, vehicle repair companies and tow companies are part of the scam.

For that reason, your employees should be trained to avoid people who appear at the scene of an accident and direct them to doctors, attorneys, and repair shops. This includes tow trucks. Never go with a towing company that suddenly appears at the scene of an accident.

Keep Your Fleet Safe

Auto frauds have developed a number of ways to defraud insurance companies. If you have a fleet on the road, they need to be aware of what to look out for.

Driving safe and knowing how to avoid companies that might be part of a scam are some ways to avoid auto frauds. But one of the best ways is to have dash cams on all of your vehicles. Read more about our dashcam services here.