What to Do if Someone Falsely Claims You Hit Their Car

If someone falsely claims you hit their car, there’s legal options you can use to defend yourself and fight back. One common type of auto insurance fraud includes submitting a claim for injuries that never occurred. Some even attempt to stage accidents to convince yourself you’re responsible for their damages.

If someone falsely claims you hit their car, don’t let them get away with it. 72% of alleged fraud victims say their auto insurance premiums increased as a result of a false claim. So, it is important you exercise your rights with an auto accident attorney.

Statistics About Auto Insurance Fraud

Insurance fraud costs $308.6 billion annually in the United States, according to the Coalition Against Insurance Fraud. Nearly 1 in 3 people (32%) believe they’ve been a victim of insurance fraud.

Auto insurance fraud is underreported, as 29% of those who say they were victims never reported it. Women are less likely to report suspected fraud than men (35% versus 24%).

How to Respond to a False Car Accident Claim

The same steps for responding to an accident still apply even when someone falsely claims you hit their car. One important change, however, is to not admit fault under any circumstances.

1. Document Evidence and Damages

The first thing to do is try to calm down by taking a deep breath. Next, take in the situation as objectively as possible. Examine your own car and the other vehicle. Make note of damage and take a lot of photos with your phone.

If there is something off about their claim, make note of it. Do the scratches on the other car look old, for example? If you’re sure you didn’t hit their car or the damages seem unrelated to what happened, write that down.

It’s not uncommon for expensive medical fees to appear after a car accident injury. It’s especially unfair to pay when you were not at-fault for the crash or if someone made a false claim. So, stay calm and gather evidence with your phone.

Approach any possible witnesses nearby and ask if they saw what happened. If they did, ask if they would be willing to provide their contact information in case you need a witness.

IMPORTANT: If you experienced a car accident injury due to their negligent actions, find an auto accident attorney to represent you.

2. Communicate with the Accuser Effectively

Avoid admitting any fault. Likewise, don’t make accusatory statements. Stay calm and gather facts.

Keep in mind that talking with the accuser directly could make the situation worse if they seem angry or unstable. Anything you say or do can be used against you, and they know that.

Sometimes they may act unstable to get you to act erratically and jeopardize your claim position. Let your lawyer or insurance company communicate with this person after collecting their info if your gut says that would be better.

3. Contact Your Insurance Company

That said, insurance companies may not always have your best interests at heart when offering a settlement. You’ll likely benefit from retaining a lawyer who can ask for appropriate compensation in case your settlement isn’t enough in the wake of a false claim.

Types of False Car Accident Claims

1. Hit-and-Run Accidents

False hit and run claims can lead to lawsuits or even a criminal charge. The scammer may claim they suffered injuries in a fabricated accident.

If you receive notice of a personal injury lawsuit related to an accident that never occurred, contact your insurance company.

It’s possible that the tag number reported was the wrong one. Your insurance company should defend you and review the evidence presented. If you loaned your vehicle to anyone during the time of the collision, tell your insurance company this fact.

2. Staged Auto Collisions

Staged collisions are carried out by organized rings for the purposes of collecting settlements from insurance carriers. This often involves the collision participants, attorneys, doctors, other health care providers, and body shops.

They are not uncommon: during fiscal year 2022-23 in the state of California, for example, the Fraud Division in California made 91 arrests and 135 referrals to prosecuting authorities. Potential loss amounted to $10,903,034.

3. Exaggerating Bodily Injury Damage

This is the most common type of insurance fraud. It’s when a car accident victim says they are more hurt than they are or require medical care they don’t really require. Let your insurance company investigate their exaggeration and act accordingly.

Signs of Car Accident Insurance Fraud to Watch Out For

There are some signs that the other driver might be engaging in fraud:

1. Pre-existing damage: If the damage they point to looks old or doesn’t match up with what you experienced, this is a red flag for fraud.
2. Suspicious behavior: If the other driver is angry, aggressive, insistent, or asking for immediate compensation, this is a sign.
3. Refusing to contact insurance: If the other driver is asking for cash instead of involving insurance, watch out.

Always refuse to settle your case individually and notify your insurance if you sustained damages. An insurance adjuster can assess the damages and can point to the source of fault, so you don’t need to feel compelled to cover damages under-the-table.

Can a False Car Accident Claim Result in a Lawsuit?

Yes. Furthermore, nearly every car accident results in some kind of loss, such as increased insurance rates and other expenses that you wouldn’t otherwise have through a car accident.

After a traumatic event such as a false claim, there are also damages like anxiety and depression and other mental health impacts. There may also be complications if you were driving a rental car at the time of being a victim of a false claim.

If you’re not at-fault for a rental car accident, you may pursue a car accident claim to cover your damages. You can use rental car reimbursement coverage for the initial repair costs, but taking legal action against the guilty party may increase your chances of a higher settlement.

The Importance of Hiring a Lawyer to Protect Yourself

There’s a deadline for most lawsuits. For crashes, this is the car accident statute of limitations, and there are different rules for each state. File as soon as possible while working with an expert attorney.

If you need local, reliable representation, LegalASAP’s 500+ law firms around the United States are ready to help. When you’re ready to reach out, call 888-927-3080 or fill out the short evaluation form below: