Insurance scams

Seasoned Driver Joined: Jul 15, 2012 Posts: 120

This topic should include insurance scams by insurance companys and drivers trying to scam insurance companys. My first story is from 1970. I had a minor accident which caused $112 in property damage. My insurance (farmers) covered the damages. They then added $112 to my next premiem! Thats when I learned that insurance companies were actually a scam. If they pay a claim they will be reimbursed for that claim whether from one customer or tens of thousands. On the other hand I had an accident in the early 1990s. My Jeep cherokee was damaged. The body shop charged my insurance company (state farm) over $300 for a new grill. I could easily see that the grill was just "pulled out". It still had the scratch on it's top caused by the accident! Recently I had another "accident" I was startingto back very slowly from a parking space in a small parking lot. I had waited for a small Mercedes to park opposite from me. They had a 20 something female exit the car and I waited for her to clear an enter the store. I resumed backing slowly (as I always do) when the Mercedes suddenly backed out of their parking space and we collided. It was not much of a bump but the woman driver of the Mercedes was quick to point out the 10 inch crack in her bumper! My vehicle did not even suffer dust rubbed off it's bumper. I am sure the Mecedes had existing damage and the driver was trying to get it fixed for free. Unfortunately for her we had the same insurance (state farm) They were wise to this scam and did not pay her claim.

Active member Joined: Mar 27, 2012 Posts: 65

sgtrock21 wrote:

This topic should include insurance scams by insurance companys and drivers trying to scam insurance companys. My first story is from 1970. I had a minor accident which caused $112 in property damage. My insurance (farmers) covered the damages. They then added $112 to my next premiem! Thats when I learned that insurance companies were actually a scam. If they pay a claim they will be reimbursed for that claim whether from one customer or tens of thousands. On the other hand I had an accident in the early 1990s. My Jeep cherokee was damaged. The body shop charged my insurance company (state farm) over $300 for a new grill. I could easily see that the grill was just "pulled out". It still had the scratch on it's top caused by the accident! Recently I had another "accident" I was startingto back very slowly from a parking space in a small parking lot. I had waited for a small Mercedes to park opposite from me. They had a 20 something female exit the car and I waited for her to clear an enter the store. I resumed backing slowly (as I always do) when the Mercedes suddenly backed out of their parking space and we collided. It was not much of a bump but the woman driver of the Mercedes was quick to point out the 10 inch crack in her bumper! My vehicle did not even suffer dust rubbed off it's bumper. I am sure the Mecedes had existing damage and the driver was trying to get it fixed for free. Unfortunately for her we had the same insurance (state farm) They were wise to this scam and did not pay her claim.

Oh my, I never could trust insurance companies!

Btw. here it's very common for young people to deliberately get their cars bumped - sort of like putting your vehicle in a convenient position (dangerous rather!) where an oncoming car can bump into them. If cleverly done, I know for a fact, loads of guys who got away with it! Shocked

Posted: Sat Oct 20, 2012 12:27 pm

Yeah, we did not have mandated auto insurance back in Russia at the day, so this was kind of a learning experience for me when I moved here. Well, I did not have any accident, but my later wife (then girlfriend) did. She just backed into a taxi cab at the gas station, leaving a dent on their door. Insurance said they paid $800 or so, and they hiked our rate up for several years - until we became smarter and switched to another provider.