Looking out for you
Avoid becoming a victim of auto insurance fraud with tips from the experts
For over two decades, CONNECT, powered by American Family Insurance, has been providing value and expertise on auto and home insurance to Costco members. The Connection spoke with Sharena Ali, president of CONNECT, to learn more about fraud prevention.
Costco Connection What’s an auto insurance topic that’s less talked about among consumers?
Sharena Ali Auto insurance fraud— most consumers are not aware that they can easily become a victim of fraud. For example, you could find yourself involved in an accident and not realize that it was staged. Our team at CONNECT is very diligent about uncovering these situations and helping members through them, to ensure that we don’t pay out on losses to these criminals. This helps keep insurance rates down.
CC What are some red flags to watch out for when it comes to staged accidents and auto insurance criminals?
SA An example of a staged accident would be a “swoop and squat,” where two vehicles work together to create an incident. The first vehicle swerves in front of the second, causing the second vehicle to slam on their brakes. This causes you (the third vehicle and the intended target) to crash into them. So, some red flags to watch out for would be:
● You notice another driver who seems to be intentionally driving badly.
● After being involved in an accident, the other driver doesn’t want to file a police report.
● “Friendly bystanders” show up and offer advice about contacting a particular lawyer, insurance agent or doctor.
CC What are some of the ways members can protect themselves from fraud?
SA Criminals like to prey on drivers who are alone and seem distracted or easy to intimidate. Here are a few more things you can do to protect yourself:
● Install a dashcam so you have video evidence.
● Use your phone to immediately take pictures and video of essential details after an accident, like damage to vehicles. Wide shots that show the surrounding area and the people involved are also useful.
● Even in a mild fender bender, call the police and request an official report.
Being prepared and monitoring your surroundings can pay off when it comes time to take the wheel. To learn more about CONNECT, visit CONNECTbyAmFam.com/fraud.
