Maybe you’ve been turned down, or you’re worried about what a past mistake might cost you. If you’ve had trouble getting auto insurance before, the last thing you need is to get caught up in something shady. But the truth is, people desperate for affordable coverage can sometimes become targets of fraud.
Scammers know that drivers who are struggling to find insurance are more likely to take a deal that sounds too good to be true. And when fraud happens, everyone pays. Higher premiums, canceled policies, and even legal trouble you didn’t see coming.
The good news is that a little awareness goes a long way. Here’s how to protect yourself.
What Auto Insurance Fraud Looks Like
Insurance fraud isn’t just something that happens in big cities or complicated schemes. It can appear in ways that might seem harmless at first.
Common examples include:
- Staged accidents: Someone slams on their brakes so you rear-end them, then they file a claim for injuries and damage that didn’t really happen
- Fake witnesses: A “bystander” appears out of nowhere to back up the other driver’s story
- Lying on an application: Someone suggests you “forget” to mention a ticket or let someone else use your address to get a better rate
- Identity theft: Someone uses your information to get insurance or file a claim without your knowledge
- Phantom passengers: People in the other car claim they were injured even if they weren’t in the vehicle
If it sounds like a setup, it probably is! Trust your gut.
Why Drivers Like You Can Be Targets
If you’ve been turned down for insurance before, you know how stressful it is. You need coverage to drive legally, to get to work, to take care of your family. When you’re in that position, someone offering “a great deal” or “a way around the system” can sound tempting.
That’s exactly what scammers count on.
They might approach you after an accident and suggest you “add” an injury to the claim. Or they might offer to help you get insurance through a friend “who can make it happen.” If it feels off, it is.
At Roadway Auto, we’ve worked with thousands of Maryland drivers who thought they had no options. There’s a legal way to get covered, even if you have a bad record or financial hardship. You don’t need to take shortcuts.
How to Protect Yourself Before an Accident
The best defense against fraud is being prepared. A few simple habits can save you a world of trouble later.
- Guard your personal information. Don’t carry your Social Security card in your wallet. Shred old insurance documents before throwing them away. Be careful who you give your policy number or driver’s license to. Identity theft and insurance fraud often go hand in hand.
- Know what’s on your policy. Read your declarations page. Know who is listed as a driver on your policy and what vehicles are covered. If you get mail about a claim you never filed, call your insurance company immediately.
- Ask questions if something feels wrong. If an insurance agent pressures you to “not worry about” something or tells you to leave a question blank, that’s a red flag. A legitimate agent will want everything on the record.
What to Do at the Scene of an Accident
Accidents are stressful. That’s when scammers strike. Having a clear plan helps you stay in control. So stay calm and don’t let anyone rush you.
If the other driver or a “witness” is pressuring you to handle the situation without the police, be wary. A staged accident often relies on keeping law enforcement away.
Always call the police. Even for minor accidents, a police report creates an official record. That makes it much harder for someone to change their story later or add false injuries to a claim.
Don’t forget to document everything. Take photos of both vehicles from multiple angles. Get the other driver’s license plate, insurance card, and driver’s license. If there are witnesses you don’t know, get their contact info too, but don’t assume they’re neutral just because they showed up.
When you talk to the police or your insurance company, tell them exactly what happened. Don’t guess. Don’t exaggerate. If you’re not sure about something, say so. Honesty protects you, so stick to the facts.
What to Do If You Suspect Fraud
If something doesn’t add up, maybe you get a call about a claim you never made, or you realize an accident you were in doesn’t make sense, don’t ignore it.
Call your insurance company first. Tell them what happened and why you’re concerned. They can investigate and help protect you from being held responsible for something you didn’t do.
You can also report suspected fraud to the Maryland Insurance Administration. Their Fraud Division number is 1-800-846-4069. You don’t have to give your name. Your report helps protect other drivers, too.
Why This Matters for Your Rates
Most drivers don’t realize that insurance fraud costs honest drivers money. When insurance companies pay out on fake claims, they spread that cost across all their policyholders. That means higher premiums for everyone.
If you’re already working hard to find affordable coverage, the last thing you need is to pay more because of someone else’s scam. Staying vigilant helps keep rates lower for everyone.
Get Covered the Right Way
If you’ve been turned down for insurance before, or if you’re worried about what your driving record might cost you, there’s a legal way forward. You don’t need to take risks with shady agents or cut corners.
At Roadway Auto, we’ve been helping Maryland drivers since 1992. We specialize in working with people who’ve been rejected by other companies. We’re a trusted third-party provider for the Maryland Auto Insurance Fund (MAIF), which exists specifically for drivers who can’t get coverage elsewhere.
We’ll give you straight answers without pressure or judgment. Just help getting the coverage you need. Call us at 301-476-1183 or contact us online to talk about your options.