The Swoop and Squat

Let's face it folks, we are in the middle of a recession. Things are bad all over, and people are looking for money any way they can get it. This of course leads to insurance fraud. Today I want to tell you about one of the most popular scams on the road: The Swoop and Squat.

Basically you have multiple cars working as a team on this one. One car pulls in front of you, and another car pulls along side of you to block you from exiting your lane. The car in front of you will slam on the brakes causing you to rear end that vehicle. The car to your side is there to make sure you can not avoid the collision by changing lanes. Now you've just rear ended a vehicle, which places you at fault. When the shock wears off you notice the other car is packed tighter than a can of sardines, and everybody seems to be grabbing their neck. Can you smell that? It's multiple injury claims, but it smells an awful lot like fraud.

But here's the thing. The other people may not seem hurt. They may look fine, and the damage to the other car may look minor. So you think it's no big deal, and you exchange information really quick as the other driver says, "I may not even file a claim." No need to call the cops, right? Nobody is hurt, very little damage, you're in the clear, right? Wrong. The other driver then takes his car to his friend's body shop where they proceed to turn that minor damage into major damage by backing the car into a wall, or hitting it with another car even. A few days go by and you get a call from your insurance company about a claim that was filed by the other driver and his injured passengers. Hope you like higher insurance rates, cause that's what your getting for Christmas.

How To Protect Yourself

The best way to avoid falling into a fraud trap like this one is to remember the basics of driving that we all learned when we were 15:
1.) Follow the 3 second rule (leave 3 seconds between you and the car in front of you)
2.) Always leave yourself an out (don't let people box you in)
3.) Pay attention at all times (Fraud loves people texting while they drive, or talking on cell phones)
And I've added one of my own: Be leery of cars packed with people. Seriously, when was the last time you were in a car with 4 or more other people? College? Family road trip? If you see a car packed with people (especially an old beat down car) keep your distance!

If you are in an accident make sure you gather as much info as you can about the other party and any passengers. Make sure to count how many passenger were in the other car and get their names and license information. You may be surprised when you thought there was only 2 people in the other car and then all of the sudden there is 5. Take pictures of the other vehicle damage just in case. Call the police. The police may or may not come. If the other people are all willing to give all their info it may not be that big a deal. If they don't want to share the info make the cops come. Tell the police you suspect fraud and you insist they come to the scene for your protection. If the other party tries to leave before the police get there tell them you have their plate number and will report this as a hit and run if they don't stick around to exchange info. The other party may protest, but that is not your problem. People who perpetrate fraud always seem nice at the scene. This is so you will let your guard down. Don't fall for it.

And last but not least. Report the accident to your insurance company as soon as possible, no matter how minor. This is why you have insurance, to protect yourself. Adjusters are trained to spot fraud indicators, and every company has a fraud division that specializes in busting these people. Let them handle it.