Having car insurance in Malaysia is extremely important, and it can save you a significant amount of money and time in the long term. While the concept is beneficial, there is a downside to the industry where some individuals exploit the insurance system.
Car insurance is not exempt from this. Authorities are constantly working to combat car insurance fraud, but it’s essential to stay informed about car insurance fraud! Read on to find out how you can prevent yourself from falling victim to this scam!
Staged Accident
You may have come across these situations on social media or even witnessed them while driving: cars or motorcycles suddenly hitting the brakes or slowing down dramatically at exits or in the fast lane, hoping to surprise other drivers.
These culprits rely on a common belief in road accidents: the vehicle that rear-ends another vehicle is typically considered at fault. Once a collision occurs, these individuals become aggressive and insist that the innocent driver immediately pays them, leaving little room for discussion. It’s a deliberately hostile tactic designed to pressure the victim into quickly giving in to their demands for a swift resolution.
How can you prevent this?
To start, it’s important to develop good habits on the road. Make sure to maintain a safe distance from the car ahead of you at all times. While the three-second rule is helpful, it’s crucial to adapt based on road conditions and your vehicle’s capabilities, as they can affect the distance needed to stop.
Also, always keep your cool. I understand it’s challenging during traffic accidents, but do your best to ignore the pressure. Remember, this is how they operate. You know their intentions, so don’t give in. Involve the authorities right away, as that will likely scare them off. And most importantly, if you can safely do so, try your best to note down their personal information and car plate details.
Consider getting a dashcam as well. If you find yourself unable to stop in time, having video evidence will prove that it was a deliberate scheme. Moreover, just having a dashcam can discourage criminals from targeting your vehicle.
Tow Truck Scam
The tow truck scam operates by preying on people’s emotions during road incidents. These deceitful individuals hide the tow trucks out of sight, patiently waiting for unsuspecting drivers to enter areas they’ve previously scattered with dangerous debris like oil or nails.
Once the drivers unknowingly run over these road hazards and damage their tires, these scam artists swoop in to “rescue” the affected vehicles and tow them away to specific workshops.
Here’s the tricky part: they will then charge outrageous fees for the towing service, and the workshops they take you to, which are likely part of the scam, will probably do the same thing.
How can you prevent this?
Once more, let’s emphasize the importance of staying calm in these situations. In Malaysia, having car insurance is a must, and the good news is that many reputable insurance companies not only provide coverage but also offer towing services and a reliable roster of authorized repair shops.
Remember, it’s crucial to avoid allowing dubious or unknown tow trucks to tow your vehicle without your consent. Always make sure the truck is genuinely dispatched by your insurance provider.
Fake Insurance Agent
A prevalent form of auto insurance fraud involves cunning imposters posing as insurance agents. These crafty individuals employ various tactics to deceive and exploit unsuspecting victims. Armed with counterfeit badges, forged papers, and tempting low prices, they lure you into their trap.
You unwittingly sign up and pay for non-existent premiums, only to discover later that you’ve been scammed. In some cases, they might even cancel your legitimate insurance policy without your consent before vanishing without a trace.
How can you prevent this?
Don’t underestimate a billion-ringgit scam that occurs every year; it’s a serious matter. Make sure you’re thorough in your investigations! It’s crucial for you to personally verify the credibility of any agent or company you plan to engage with. We know cost matters, but if an offer seems too good to be true, it probably is!
Navigating the world of car insurance in Malaysia requires vigilance and awareness. While having car insurance provides peace of mind and protection, it’s important to be aware of the darker side of the industry – insurance fraud. Remember, a little extra diligence can save you from falling victim to scams that occur far too often. Stay informed and protect yourself from car insurance fraud.
Bjak is one of Malaysia’s biggest insurance comparison sites, with more than 10 insurance brands to choose from. Get your free insurance quote at Bjak today!
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