Car crash victims targeted by scam insurers
Written by admin on October 23, 2024
Motorists involved in car crashes are being warned to be wary of shonky companies intercepting insurance claims and then holding vehicles as ransom until payment is made.
Rogue operators posing as insurance companies falsely push the need for towing services and then hold cars hostage until thousands of dollars in fees are paid, according to WA Consumer Protection.
The watchdog has received reports from consumers who were involved in a crash and were misled by online results when they searched for their insurance company’s contact details.
The internet search results did not identify the legitimate insurers but instead prompted the details of businesses offering accident management services.
When drivers contacted the businesses they thought were their insurances, they instead spoke to people who falsely claimed to be affiliated with their insurance provider.
After accident details were lodged and photos of the damage were sent, victims reported being told their vehicles were unsafe to drive and had to be towed away for assessment.
One woman became suspicious when her car was towed away despite receiving only scratches in an accident.
She was asked to inform her insurance company that the vehicle was not roadworthy and received instructions to nominate a specific panel beater as the preferred repairer.
The victim rang her insurance company which had no record of the claim.
To add insult to injury, she was sent a towing bill for almost $6,700.
Another victim whose car was damaged but safe to drive received a towing bill of $4,500, which was paid by her insurer in order to retrieve her car.
WA Consumer Protection commissioner Trish Blake said it is concerning these third-party companies are misleading consumers at a vulnerable time in their lives.
“After a car accident, victims are often in emotional or physical distress, which can cloud their judgment and make them more susceptible to deceptive tactics,” she said.
“To tell crash victims their vehicles are unsafe and need towing, when that’s clearly not the case for minor panel damage, is misleading and could contravene the Australian Consumer Law.
“Our problem isn’t with genuine and reputable accident management companies. It’s with these particular operators who are posing as insurance companies and making false representations to consumers about needing services.”
WA Consumer Protection recommended people only contact their insurance companies using legitimate phone numbers found on their official website or from correspondence.
