Vehicle Insurance Scams

Last updated: October 7, 2015

Learn the Signs of Vehicle Insurance Scams

Drive Down

A driver waves on another driver, indicating it's O.K. to proceed, and then intentionally hits the passing car.

Hit & Run

Using a pre-damaged vehicle, criminals claim they were in an accident and can't identify the other driver. Often they call police to verify.

Paper Accidents

An owner fabricates an accident by making false police and insurance reports.

Policy Misrepresentation

A vehicle owner uses a friend's or relative's address and misrepresents how far he drives to work to obtain a lower premium.

Owner Give-Up

The vehicle owner orchestrates the destruction of the vehicle to collect insurance money.

Risky Repairs

An auto body shop owner offers to "hide" the deductible or inflate the extent of damage.


A driver in the inside lane of a dual left turn lane in a busy intersection drifts into the outer lane, intentionally forcing a collision.

Swoop & Squat

This scam occurs when the vehicle you are following is suddenly passed by another vehicle that "swoops" in front of it. This causes the vehicle in front of you to stop abruptly, or "squat." As a result, you are unable to avoid colliding with the rear end of the vehicle. The drivers of both the swoop and squat car planned the accident. The swoop car will never be seen again. The driver of the squat car plans to submit vehicle damage and personal injury claims to your insurer. Oftentimes, multiple occupants in the squat car will fabricate bodily injuries as well.

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