Swoop and Squat, a Dangerous Form of Car Insurance Fraud

By Michael Collins

Insurance Fraud is a major problem in today's society. People will often hear stories about people burning down their houses or even killing spouses in order to collect insurance money. However, there is another form of insurance fraud that is not as common or as well-known: the Swoop and Squat, a form of auto insurance fraud.

AllState Insurance has publicized this type of fraud in commercials to help customers avoid becoming victims. Their website defines the swoop and squat as "Two vehicles work as a team to set up an accident. One vehicle pulls in front of an innocent driver and the other alongside, blocking the victim in. The lead car stops short, causing the victim to rear-end him. The car that pulled up alongside serves as a block and prevents the victim from avoiding a collision." So, the fraudsters essentially create a "controlled accident" that minimizes the risk to themselves, but will still get them a lot of money from the insurance companies, as well as causing the victim's insurance rates to go up.

Cities like Los Angeles and Miami have been known as hotbeds of swoop and squat rings. In addition, vehicles that are heavily insured, like tractor-trailers or expensive cars, are commonly targeted. If the fraudsters claim bodily harm (often faked), along with the damage to the car, they can make much more money with their scheme. Many rings have been known to involve corrupt doctors and lawyers, in order to verify injuries and get the cases through the court system.

This type of fraud is often difficult for drivers to avoid if confronted. However, insurance companies believe that the best ways to avoid becoming a victim are refrain from tailgating other cars, and to call the police as soon as an accident takes place.

References:
http://www.allstate.com/About/fraud.aspx
http://www.buy-and-sell-car-secrets.com/swoop-and-squat.html
https://www.nicb.org/cps/rde/xbcr/nicb.../13734_StagedFraud_Eng.pdf
http://www.justnews.com/news/18888799/detail.html

How You Can Save on Car Insurance

Posted By Michael Collins

Before you compare rates, check out these money-saving tips for your car insurance.

1. Earn a low mileage discount. If you work from home, carpool or use public transportation, look for companies with discounts for low mileage, pay-as-you-go, or carpooling. And, tell your current insurance company if you're driving less these days; rates may be lower if you drive less than 10,000 miles each year.

2. Increase your deductibles. You may save 10 percent or more on your comprehensive and collision premiums if you increase your deductible from $250 to $500. And, if you car is really old, it may be time to drop comp and collision coverage completely—but only if you're willing to pay for repairs yourself.

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Car Insurance for Teens

Posted by: Madeleine Brooks

College Students Saving Money on Car Insurance

Posted by: Madeleine Brooks

From my own experience, I do not own a car but plan to do so in the fall of my senior year. My parents keep talking to me about how they will have to put me on their insurance and how expensive it will be to do so. Therefore, I decided to do some research on saving money for my parents and myself on car insurance. There are many ways to save money on car insurance. Here is a list of items that will help reduce the cost:

1. Being a good and responsible driver. By being a good and responsible driver, you pay less for your car insurance. The more accidents one incurs, the price of your car insurance increases. Also getting tickets from the police and having that on your license will also increase your car insurance. If you avoid tickets and accidents you will be considered a "low risk driver" and your car insurance will be much lower.

2. Be careful with the vehicle you wish to drive. Every car is priced based on the model, year and the make. The first thing a college student should do is research different cars of their liking to see the insurance quote on it. If you decide to drive a Porsche, you will be spending a fortune as oppose to driving a station wagon.

3. Take a defensive driving course. If you want to reduce your car insurance, going to a defensive driving course can be beneficial. The courses are relatively long, however, insurance companies offer reductions and discounts to those who take these courses.

4. NEVER drive under the influence of alcohol. The legal drinking age in the United States is 21. Most college students are not 21 until the end of their junior year into senior year. Drinking under age or of age and under the influence not only will increase your car insurance but you most likely will have your license suspended for an allotted time. Getting into an accident and being under the influence of alcohol will ruin your chances of lower car insurance. Basically, DON'T DRINK AND DRIVE!

5. Receiving Good Grades. Insurance companies like to believe that responsible students are also responsible and good drivers. Insurance companies can offer discounts and reductions for students that have good grades. Ask the insurance company that you are under if they have this policy. Most of the companies offer discounts if a student makes Deans List, has a GPA of a 3.0 or higher, have a grade point average of a B or higher. Do well in school, it pays off in the long run.

There are other ways to save money on car. Click this link to see the rest of the list. Another question a college student needs to think about is: Do I really need a car at school? There is more than just driving your car up to college. Students need to take into consideration factors such as:

• Auto Insurance
• Parking Expenses/Permits
• Gas
  
• Maintenance
• Registration

Other things students should consider are places to park on campus. Syracuse University has limited parking and that can be a determining factor in having a car up at school. Also where you go to school, if its in a rural or urban area. If it is in a major city, car insurance will go up and there is the possibility of car theft, limited parking and stress because of the traffic and heavily populated roads. If there is public transportation provided at your college, you should do some research and see if using this will reduce your expenses.

There are a lot of things that college students should think about to save money on car insurance as well as bringing a car to school. I know that I will be spending quite some time to figure out the costs and benefits of having a car up for my fall semester of my senior year.

References:
http://collegeuniversity.suite101.com/article.cfm/college_students_and_cars
http://collegeuniversity.suite101.com/article.cfm/cheap_car_insurance_for_students

9 Ways to Lower Your Auto Insurance Costs

Posted by: Madeleine Brooks

1. Ask for higher deductibles

Request higher deductibles on collision and comprehensive (fire and theft) coverage and lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 percent to 30 percent.

2. Drop collision and/or comprehensive coverages on older cars

It may not be cost effective to have collision or comprehensive coverage on cars worth less than $1,000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers and banks can tell you your car’s worth.

3. Buy a “low profile” car

Before you buy, check insurance costs because fast and expensive cars that cost more to repair and are a favorite target for thieves have much higher insurance costs.

4. Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive a limited number of miles a year.

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Six Car Insurance Mistakes to Avoid

- By Kevin Yu

If increasing numbers of drivers on the road are uninsured as the industry expects, those of us with insurance should take a good look at our coverage to be sure we're adequately protected in case of an accident.

Here are six common car insurance mistakes to avoid:
1. Driving without uninsured motorist coverage.
2. Carrying too much/too little uninsured motorist insurance.
3. Failing to consider insurance costs when car shopping.
4. Insuring your home and car separately.
5. Buying insurance with the lowest deductibles.
6. Never evaluating coverage.

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