Category: Insurance

Understanding the Benefits of Insurance Scoring

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Most people realize their credit affects their ability to get mortgages, car loans, and other types of debt. However, businesses use personal credit histories in many other ways. Employers use it when considering job applicants. Landlords use it to evaluate prospective tenants. Increasingly, insurance companies are using it to develop an “insurance score,” a number that reflects the quality of a customer’s credit history. The companies’ research has shown  that people with good insurance scores tend to submit fewer insurance claims than people with poor credit histories. Because of the predictive value of credit history, many insurers now obtain an applicant’s insurance score during the underwriting process.

Some consumers are concerned about insurers using their credit information in this way. However, the use of scoring actually has many benefits for insurance consumers.

Insurance scoring speeds up the underwriting process. Before insurers began using scoring, underwriting decisions could sometimes take days. Internet technology allows an insurance company to obtain your score within seconds, which cuts the decision time down to just a few minutes. Many insurance agents are able to obtain a company’s approval almost instantly.

Scoring uses the facts about a person’s credit history to enable underwriters to make objective decisions. Scoring does not take into account a person’s race, nationality, gender, marital status, or other factors that the person cannot control. It focuses only on how that person has used credit in the past. The insurance application still asks about factors such as gender and marital status, but the insurer uses those answers only to correctly classify the person and ensure that it charges the proper rate. Scoring looks only at numbers, resulting in decisions that are much fairer. People of widely differing incomes and backgrounds who have similar insurance scores are treated the same way.

Scoring recognizes that a person can make up for past mistakes. Just as he can improve his driving record by becoming a more careful driver, a person can improve his insurance score by reducing debt and making payments on time. Old mistakes lose importance as time passes; scoring gives more weight to recent actions than it does to older ones. As the score improves, the person can benefit from lower rates and more companies interested in insuring him.

Scoring also increases the availability of insurance. Many companies use different pricing “tiers,” built around specific policyholder criteria. Scoring makes the use of tiers easier because it is an objective factor. If a company has five pricing tiers, and an applicant’s score is too low to qualify for the best one, the company might be able offer insurance to that person in one of the other tiers. It gives companies alternatives to simply rejecting the application.

Because scoring is an automated process, it makes the underwriting process more efficient for insurers. This lowers their costs and allows them to charge lower rates. Also, because it allows insurers to more accurately predict losses, they can control their losses and keep their rates lower.

Studies have shown that most people have good credit scores. Because of this, most people benefit from insurance scoring. They pay lower rates for home and auto insurance then they would otherwise. People who want to earn better rates can more easily fix their credit history than they can fix their driving records, which generally keep traffic violations for at least three years. Scoring gives insurance companies another tool to ensure their rates are fair, so that customers more likely to file claims pay more for their insurance.

At What Amount Should I Set my Auto Insurance Deductible?

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While almost everyone would like to save on their auto insurance, it can be a big mistake to be penny-smart, dollar-foolish. The dollar amount you set your comprehensive and collision deductibles at will be one of the most important decisions you make during the purchase of auto insurance. In turn, the deductible amounts you set will be one of the main determining factors in the amount of your monthly premium.

Any insurance policy covering comprehensive and/or collision will contain a deductible. Most deductibles are $1,000, $500, $200, or $100 dollars; but deductible amounts do vary by state. Deductibles are the cost you will pay out-of-pocket during an insurance claim. For example, let’s say that your deductible is $500 and you’re involved in an auto accident that causes $4,000 dollars in damage to your vehicle. You will be responsible for paying the initial $500 and the insurance company will then pay the remaining $3,500. On the other hand, if your deductible is $100, then you will only pay $100 before the insurance company pays the remaining $3,900. As you can see, a higher deductible means you pay more out-of-pocket and a lower deductible means you pay less out-of-pocket after an accident. As a general rule, lower premiums are associated with higher deductibles and higher premiums are associated with lower deductibles.

It can be difficult to weigh what premium amount you’re willing to pay now against what deductible amount you’ll be willing to pay for any future claim. Be sure to take into account your comfort level; income, savings, and credit lines; driving history; and your vehicle’s value as you make your decision on the deductible amount.

Choosing a high deductible/low premium or low deductible/high premium will greatly depend on what you can reasonably afford. Imagine that you had an auto accident today – would you have funds from your household income, credit lines, and/or savings to use as your deductible? If so, what financial impact would using funds from these sources have on your family and how much would you be comfortable using to pay the deductible? If the deductible you have in mind (or already in place) is higher than what you have available or feel comfortable using, then it should be lowered. On the other hand, if you have the funds easily available to pay a higher deductible amount, then you can raise the deductible and save money on your premiums.

You also need to ask yourself how much risk you are willing to assume. Will you continue to be prepared to cover the deductible amount you set? If not, are you willing to risk having a high deductible and bet on not getting into an accident?

How often you expect to make a claim on your insurance is another factor to consider. While accidents are unpredictable and no driver wants to think they’re a bad driver, your driving history speaks for itself. If you’ve had a history of frequent fender-benders or accidents, then it could be best for you to opt for the higher premium/lower deductible option. On the other hand, the lower premium/higher deductible could be a better option if your driving record is excellent or only has a few infrequent driving incidents. You might also consult your insurance agent on what the average deductible is for your driving experience and the age of your vehicle.

Don’t forget to review your auto insurance deductible at least once a year. Ask yourself if your financial situation has changed since the deductible was set and if the deductible amount is still something you could comfortably pay if you had an auto accident today.

The bottom line is this: don’t let purchasing car insurance confuse or overwhelm you. Take your time to assess your finances and circumstances to figure out what you feel comfortable with paying on both a monthly basis and at any given time an accident should occur. If you have any questions or concerns, don’t hesitate to consult your auto insurance agent.

Getting a Handle on Your Insurance Company’s Stability and Strength – A Brief Guide to the Rating Agencies

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Long before 9/11, insurer stability was an important but overlooked factor in the insurance purchase decision.   Now, after 9/11, it can no longer take a back seat to issues like coverage or price.  Insurer insolvencies are on the rise as old liabilities such as asbestos come back to haunt some companies, and newer exposures such as corporate scandals, accounting irregularities and toxic mold threaten to keep actuaries busy for years to come.  With the above in mind, how does one factor the financial strength of insurance companies in to the buying decision? 

The answer lies somewhere between Standard & Poors, Moody’s, Duff & Phelps, Fitch and the granddaddy of them all, A.M. Best. All the aforementioned companies provide some kind of measure of insurer stability and financial strength.  All use different scales, different factors and somewhat different terminology in their analyses.  Invariably, all the rating agencies use a mixed bag of criteria to develop their ratings and they all do comprehensive analyses of the companies with a “Readers Digest” version often available online for free. 

Let’s take a quick tour of the A.M. Best rating structure just to get a taste.  As always, your agent is a good source of information regarding the companies you are insured with or contemplating insuring with, but feel free to browse the Best, S & P or any of the other websites for your own edification as well.

A.M. Best (https://www.ambest.com)

A.M. Best provides ratings according to financial strength and size.  There are sixteen distinct financial strength ratings which are further boiled down to ten general descriptors, such as “Superior”, “Excellent”, “Very Good”, etc.  It’s worth noting that many in the insurance industry consider anything below “Excellent” to warrant caution, especially if it is the result of a recent downgrading from a higher rating.  Such a downgrading often precedes a further downgrading so it is important to look into the history and see what the rating has been over the past two or three years or longer.

In addition to the above general descriptors, there are further categorizations within the A.M. Best rating structure.  The “Superior”, “Excellent” and “Very Good” rating descriptors and their respective ratings all comprise the “Secure” category of ratings.  Everything else gets lumped into the “Vulnerable” category.

A.M. Best also has financial size categories that measure the company according to factors such as statutory surplus, a measure of the capacity of the company to pay claims.  Larger companies with higher statutory surplus will end up on the higher end of the scale, which tops off at XV (15) while smaller, less well-heeled companies will end up on the lower end, starting at I or 1.   A company with an A++(XV) rating by A.M. Best receives top honors and would appear to be the “best” bet for the long haul.  Though financial stability is an important factor, other factors, like a good reputation for paying claims should weigh in the decision making process.  Again, talk to your agent and find out more about the companies you are considering purchasing coverage from.  They will be happy to give you insight into the history of the company and point you in the right direction to access available resources to help you make an informed decision.  While there are no crystal balls that can predict the future outlook for your insurer of choice, there are certainly benefits to making an informed purchase decision. 

Naturally Occurring Substances Can Expose Construction Firms to Environmental Liability

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What do silica, mercury, arsenic, pyrite, and asbestos have in common? They all are recognized as toxic substances, or contain toxic substances as defined by the U.S. Environmental Protection Agency. Their very presence on a construction site presents a serious exposure for a construction contractor.

There are potentially hazardous consequences when these toxic substances are uncovered during construction:

·   Mercury – is a human neurotoxin; meaning it acts specifically on neurons or nerve cells. It is most hazardous to developing fetuses and small children. Eating mercury-contaminated fish is the way most humans become exposed. When mercury enters water, certain conditions can cause it to convert to methyl mercury. Methyl mercury is ingested by aquatic creatures and becomes more concentrated as it moves along the food chain. Humans receive the highest forms of concentration because they are at the end of this food chain.

·   Pyrite – has a high sulfur content, which if exposed to oxygen or water will form sulfuric acid. When a construction project releases significant amounts of pyrite into the surrounding area, it can result in high amounts of acid drainage, which enters surrounding bodies of water. The acid drainage contaminates streams and water wells of area residents.

·   Asbestos – has little or no impact on the environment and human health if left undisturbed. However, when construction releases natural asbestos fibers into the atmosphere, it exposes workers and residents of the surrounding area to respiratory hazards. Asbestos is known to cause cancer of the lungs and of the lining of internal organs.

·   Silica – is most dangerous in the crystalline form known as silicon dioxide. People who have been exposed to silica and contract silica-related respiratory conditions usually have inhaled tridymite or crystobalite contained in the dust released during construction. Although all forms of crystalline silica are different in chemical structure, all can eventually be deadly.

·   Arsenic – has been linked to cancer of the bladder, lungs, skin, kidney, nasal passages, liver, and prostate. Non-cancer effects can include thickening and discoloration of the skin, stomach pain, nausea, vomiting, diarrhea, numbness in hands and feet, partial paralysis, and blindness.

What specific implications does the presence of these toxic substances have on environmental liability insurance?  Many of these policies contain wording that excludes these naturally occurring substances from the coverage. In Contractor’s Pollution Liability Insurance (CPL), there are several ways exposure to naturally occurring hazards may be excluded. For example, the insurer could include a specific exclusion for naturally occurring substances in the exclusions section of the policy. No coverage would apply to claims based upon any naturally occurring substances in their unaltered form, or in an altered form due to naturally occurring processes.

A second way to exclude these substances from coverage is to exclude them by definition. In the policy’s definition of covered pollution conditions, the definition does not include naturally occurring substances. Pollution conditions are defined as the emission, discharge, dispersal, release or escape of pollutants, which are not naturally occurring. This negates coverage for these substances.

Does this mean you shouldn’t purchase a CPL policy? The answer to that question would be “no.” There are a number of different policy forms. Talk to your insurance agent to get the one that is best suited to your needs.

Ensure Your Boating Experience Is a Real Pleasure Cruise

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Published reports from the U.S. Coast Guard show that boating deaths and injuries increased for the second consecutive year in 2006. Aside from the disturbing trend in boating deaths, the biggest change was actually in the amount of property damage, $43 million in 2006 as compared with $38 million in 2005.

These statistics should serve as a powerful reminder to all watercraft owners to review their insurance coverage. Owners of canoes, small sailboats, and small engine powerboats generally have limited coverage for physical damage included with their homeowner’s insurance policy, but liability coverage has to be added as a policy endorsement. Physical damage coverage is typically equal to 10 percent or less of their home’s property value. If you find the coverage limits offered by your homeowner’s policy to be insufficient, you’ll likely need a separate boat insurance policy.

Since no coverage exists under a homeowner’s policy for larger boats, yachts, jet skis and wave runners, a separate boat insurance policy is a must. Coverage for physical damage includes the hull, machinery, fittings, furnishings and permanently attached equipment up to pre-determined amount. Such policies also provide additional protection for:

  • Injuries to another person
  • Damage to someone else’s property
  • Legal expenses incurred by someone using the boat with the owner’s permission
  • Injuries to the boat owner and other passengers

Even though you may have solid insurance coverage, the Insurance Information Institute (III) offers the following suggestions to help you avoid having to file a claim:

  •  
    1. Check weather forecasts before heading out.
    2. Let someone know where you’re going and when you expect to return.
    3. Check engine, fuel, electrical and steering systems, especially for exhaust-system leaks.
    4. Carry one or more fire extinguishers, matched to the size and type of boat. Keep them readily accessible and in condition for immediate use.
    5. Equip the vessel with required navigation lights and with a whistle, horn or bell.
    6. Don’t overload. Distribute weight evenly.
    7. Don’t stand up or shift weight suddenly in a small boat; and don’t permit riding on the bow, seatbacks or gunwales.
    8. Be sure you bring paddles or oars, a first-aid kit, a supply of fresh water, a tool kit and spare parts, a flashlight, flares and a radio.
    9. Make sure that every person on board wears a life jacket.
    10. Never operate a boat while under the influence of alcohol or drugs.

Who Rates Insurance Companies – Finding the Best

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It’s no longer enough to choose an insurance company simply because they offer what appears to be the best coverage or lowest rates. You also have to know the financial security of the company especially in these challenging economic times when even the largest companies might be teetering on the edge of insolvency.

Additionally, you want to know something about the company’s track record when it comes to paying claims and overall customer satisfaction. Not all insurance companies are the same and you should take a hard look at your prospective insurer before handing over a big premium check.

How can you find this information? Well, it’s easier than you think because there are several major companies that rate insurance companies. Each offers a detailed rating service and most of these services are free.

The rating system for each of these rating companies is based on a letter grade system such as “AAA”, through “NR.” However, you should note that there are both subtle and significant differences in the letter grade system. A “C” rating might mean an average score for one rating company but might also suggest the insurance company is experiencing significant financial challenges with a different insurance rating company. Make sure you fully understand the rating system for each of the companies before jumping to an erroneous conclusion.

Some rating companies only rate the top 200 insurers, while others offer more comprehensive data.

Here is a brief summary of the major companies which rate insurance companies. 

1. A.M. Best – www.ambest.com

This rating agency is the only one which specializes in banking and insurance companies, reinsurers and covers the total insurance market spectrum including international markets such as the U.K and Canada. Also offers a comprehensive article base and in depth commentary.

2. Fitch Inc. – www.fitchratings.com

Provides a global rating service on insurance products through combining both local and international expertise on contemporary insurance issues and trends. Also offers a monthly newsletter dealing with specific insurance issues called “Insurance Insights.”

3. Moody’s Investor Services – www.moodys.com

You have to register to log in with this company before you can access their info. Covers title insurers, life, mortgage and property and casualty. Mainly focused on the financial health and outlook of insurance companies and overall realm of the financial market.

4. Standard & Poor’s – www.standardpoor.com

Must be a subscriber. Offers international rating services on property and casualty, life, annuities, health, title, mortgage, bond and reinsurance. Rating services include link market solutions and both the derivative product and financial subsidiaries.

Self-Insured Retentions vs. Deductibles: Your Skin in the Game

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Self-insured retentions (SIR) and deductibles are the two conventional mechanisms insureds use to reduce both premiums and loss ratios in liability policies.  Those insureds must strike several careful balances in order to sustain affordable coverage while protecting assets.

First, an insured must analyze cash flow and balance sheet statements in order to make an informed decision as to which approach, if either, is best.  Using either simply to reduce premiums is foolish, and could prove to be very dangerous.

A self-insured retention means that the insured carries a fixed amount of risk, including adjusting and legal expenses.  The insurance policy, whether a primary or umbrella contract, is excess coverage above the SIR.  The insurance carrier will impose reporting requirements on the insured in order to monitor the development of claims that may impact the liability limit to which the company is exposed.  For example, the insured, typically, must report claims that involve fatalities, amputations, third-degree burns, brain injuries, and any other claim for which the insured sets a reserve of 25% or more of the SIR amount.  The carrier will require that adequate, proven risk management staff be in place, whether native or contracted.  SIRs are rarely smaller than $100K, and can be $1M, $3M or higher for large companies with good controls and substantial liquid assets.  Some states have legislation in place to regulate such “attachment point” business.

Finally, the SIR normally has no effect on the amount of insurance available under a liability policy.  Such tools are available, though, with permission for company intervention, in which case the form-they are unique as to carrier and insured-may provide for loss adjusting and defense expenses that do not erode the insured’s liability.  In other words, if the carrier chooses to “drop down,” and take over management of a given claim, those expenses fall on the carrier even though the claim may settle within the SIR.

A deductible, on the other hand, is a portion of an insured loss borne by the insured.  The carrier will typically pay the entire claim, and then be reimbursed by the insured.  Unlike an SIR, a deductible erodes the limit of liability in the insurance policy.  A policy with a $1M limit of liability and a $25K deductible, then, exposes the carrier to $975K.  Loss adjusting and legal expenses typically further erode the limit.

Deductibles are commonly used with risks that have a frequency of smaller claims.  Daily auto rental or taxicab fleets (lots of minor fender benders), contractors with multiple job sites, supermarket chains (lots of slip-and-fall activity)-are typical of the kinds of risks that can benefit from deductible treatments.  Deductibles almost always include loss adjusting and defense expenses.  All claims are reported per the policy’s terms, and the carrier is involved in the adjusting process immediately.

Collateral instruments for these management tools include escrow accounts, by which the insured maintains a cash reserve with the insurance company (which may or may not pay interest on it), and evergreen letters of credit.  Escrow accounts are more frequently used with frequency-prone risks (think deductible), while a letter of credit is typically more suitable to an insured that carries a substantial SIR.

While the fine points these mechanisms provide differ in practice, their common goal is to reduce loss ratios and premiums for quality insureds who pay attention to their own risk/reward postures, and who share the character and values of the carriers that provide their coverages.  An insured that has the ability to manage claims, and to therefore manage risk, should be very attractive whatever the condition of the insurance market.

Is Your Cyber-Policy Really Covering Your Technology-Related Exposures?

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As businesses become increasingly reliant on technology to store sensitive information, the incidences of security breaches are becoming more prevalent. Each security breach increases the risk that a lawsuit or regulatory action could financially ruin a company and permanently damage its reputation. The situation is so bad, that some retailers and financial institutions targeted by litigation and regulatory actions are trying to hold their technology vendors accountable so they can transfer some of the fallout.

Many companies find themselves financial victims because they don’t buy insurance that addresses the many exposures related to security breaches. In some instances, a breach can trigger the need for a number of coverages, including crime, errors and omissions, employment practices liability, general liability, property and directors and officers liability. The so-called “cyber” policies address only one aspect of the exposure, the theft of information, money and identities through the Internet. That’s because these are major problems that are on the rise. According to Privacy Rights Clearinghouse, since February 2005, there have been more than 260 major security breaches involving nearly 100 million personal records. But if a company has only this basic coverage, they may not be prepared if disaster strikes. They should consider a more company-wide approach that includes insurance coverage for all possible exposures associated with a breach.

At the very least, your cyber policy should provide coverage in the following general risk areas:

·   Defense Coverage – Some policies limit the insurer’s duty to defend to actual lawsuits. That means that the insurer isn’t required to defend the insured against a claim, which may or may not result in a lawsuit. Others extend the duty to defend to all claims. You should look for the provision to defend against all claims in a cyber policy. You also need to review the policy in terms of who has the right to choose the attorney who will defend the claim. Many insurers can provide a choice of counsel provision that allows the company to make that choice. Talk to your insurer about having this provision incorporated into your policy.

·   Business-to-Business Coverage vs. Business-to-Consumer Coverage – If you want coverage for either or both of these risks, you have to make this known to your insurer. You need to be sure that the various exclusions and/or conditions necessary to minimize gaps in either coverage are present in your policy. These include electric/mechanical breakdown exclusion; breach of security exclusion; bodily injury/property damage exclusion; and employee malicious conduct exclusion.

·   Intellectual Property Infringement Coverage – All cyber insurance policies provide some level of intellectual property infringement coverage. However, some policies offer less coverage than others. Some even exclude coverage for software copyright infringement. Review the policy before you purchase to understand how much protection you have in this area. Most insurers are willing to insure software copyright infringement risk for an additional premium.

Remember, cyber insurance is like health insurance, you should customize your coverage to suit your company’s needs. Your best defense is to talk with your insurance agent to develop a plan that is right for you.

Do I Need to Make an Accident Report?

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The first few moments following an auto accident can be an extremely confusing, emotional, and frightening time. As such, it may be difficult to know what accidents need to be reported and what your insurance may require.

There are some types of accidents that will always need a response from one of the local law enforcement departments, such as Highway Patrol, Police, or Sheriff. Each law enforcement department will have a jurisdiction, meaning that which department responds and takes the report will depend on where the accident occurred. For example, an accident within the city limits will most always be handled by the Police. Regardless of the responding department, you should always make a report when an auto accident involves elements like an injured person, severe damage to any vehicle, and/or a driver flees the scene of the accident.

Your insurance company may also require you stay on the scene and report the accident, even in cases where the other driver flees the scene of the accident. Some insurers will accept a counter report. A counter report may be provided by the responding officer for you to fill out, or you might need to go to the nearest station to complete the form off scene. Counter reports are fairly commonplace in larger jurisdictions when the responding officer sees that the vehicles involved are still in working order and no one is injured. In any event, just make sure to remember to get a copy of the counter report for your insurance carrier.

Even if the accident doesn’t involve one of the above elements, there are certain situations where it can be very helpful to have a law enforcement response and accident report. For example, the other driver might admit blame and offer you cash for your damages, but refuse to give you his/her insurance information or contact information. Even if the other driver does offer you his personal contact information in such a situation, you still have no way of knowing if the information being provided is factual. Another example would be you forgetting to collect all the important information and crucial details of the accident because you’re stressed or confused from the accident.

Making a police report can be very helpful in any of these situations since it will involve the law enforcement officer collecting/verifying the driver’s name, address, phone number, car tag, insurance information, accident details, injury details, and so forth. Basically, most any detail that would be needed in court or by the insurance adjuster will be documented in the police report.

Lastly, even though a police report will be necessary or needed for many accidents, you should still always try to remember to write down all the information yourself. Depending on the jurisdiction, it can often take weeks to months for the insurance adjuster to request and obtain a copy of the accident report. On the other hand, the adjuster can initiate the investigation immediately when you’re able to provide the insurance information on the other driver(s).

Beware of the Scam of Fake Auto Accidents

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Many think of fraud as a non-violent type of crime. In reality, vehicle insurance scams, including the staged traffic accident, are far from non-violent. Aside from costing honest consumers hundreds to thousands of dollars in added insurance premiums, this steadily growing form of fraud has resulted in countless injuries and deaths to the innocent victims of the scams.  In fact, data from the NICB (National Insurance Crime Bureau) shows that staged traffic accidents have rapidly become a leading source of insurance fraud across the U.S.

How Does It Work?

These criminally staged collisions frequently involve several suspects driving a car. The victim is the driver of another vehicle that’s being targeted by the suspects staging the collision for their own financial gain.

The suspects will most often use one of two techniques:

1. Swoop and Squat

Two or more suspects drive two different vehicles. They target an unsuspecting vehicle, most often an older model that only contains one victim. This is done so that there will not be any witnesses to the collision. The one or two suspects in the squat vehicle position their car in front of the vehicle driven by the victim. They slow to create a smaller space gap between themselves and their victim. Then, the swoop vehicle suddenly changes lanes to cut in front of the squat, thereby causing the squat vehicle to throw on breaks and stop. As a result, the innocent victim rear-ends the squat. Meanwhile, the swoop vehicle is long gone and the squat vehicle is claiming that an unknown vehicle cut them off and forced them to brake.

2. The Drive Down or Wave On

In this version, the suspect(s) are stopped at the entrance to a parking lot or an intersection. They wave on or yield the right-of-way to the victim. When the victim proceeds, the suspect intentionally accelerates to collide with the victim.

What Can Drivers Do To Reduce The Risk Of Being A Victim?

* Stay aware of your surroundings, paying close attention to what the vehicles several in front, behind, and beside you are doing and maintaining sufficient room between you and all other vehicles.

* Use caution when making a turn in front of another vehicle, even if they yield the right-of-way.

* Since suspects tend to look for innocent drivers that accidentally cross the center line and then sideswipe them, pay close attention to staying within the lines of a lane.

* After any accident, count the number of passengers and get their personal information. You may find that more people are listed on the insurance claim than actually in the accident.

* Avoid driving when you’re stressed; preoccupied with a cell phone, map, or food; or lethargic. All of these lessen the care at which you drive and your concentration abilities, thereby increasing your vulnerability.

* Have a camera in your vehicle to take photos of the scene, license plates, and the occupants of the other vehicle you have an accident with.

* Always call the police and get a copy of the police report. If the damage to the other car is minor, then ask the officer to specify this on the report, as this will make it more difficult for the other party to create more damage for a larger claim.

* Alert the authorities if you feel the accident was staged.

In closing, these staged traffic accidents often have criminal elements that reach far beyond just the suspected drivers. It’s often a criminal collaboration between unscrupulous doctors and attorneys that willingly and knowingly assist in the fraudulent insurance claim process.