Spokesmen from a few auto insurance companies, including State Farm and Allstate, have stated that they are considering pay-per-mile auto insurance but haven’t decided whether or not it’ll actually become a reality.

With the economy being the way it is, getting a big discount on insurance every month would be very enticing for drivers. Leisure driving may be reduced, and families will be more responsible about grouping trips together and making unnecessary trips. Carpooling would also most likely see an increase. It also might encourage owning multiple vehicles, because families wouldn’t be paying for cars that just sit there.

From a consumer perspective, the change makes a lot of sense. From the heavy purse of an insurance provider, however, I’m not sure if this is a change they’re hoping for.

Picked this up via Google News

But guess what? You didn’t really cause that accident. In fact, it wasn’t an accident at all. It was staged. You’ve just become the latest victim of auto insurance fraud.

This tactic is known in the insurance industry as a “swoop and squat.” The two cars were actually working in tandem to cause a collision, and make it seem like your fault. The car that suddenly cuts, or swoops, into the lane is called the swoop car. The car that is hit is called the squat car. The scammers purposely load up the squat car so they can file numerous medical claims against your insurance, sometimes receiving tens of thousands of dollars for each person supposedly injured in the accident.

A variation of this scenario is called a “panic stop.” Again, the car planning to be hit is full of passengers. The car will pull into a lane in front of you, and then one of the passengers is assigned the task of watching for a moment of distraction. As you’re driving behind the vehicle, all it takes is a moment to adjust the stereo, answer your phone, or turn your head to talk to another passenger in your car. The lookout gives the driver a signal that your attention is diverted, and the driver slams on the brakes, causing you to rear end the full car. Once again, every passenger will feign injuries of varying degrees, and it’s you who will foot the bill.

If you have good auto insurance coverage, you may not have to pay anything out of pocket to repair the other vehicle, or to cover any medical expenses. Most times, these scammers get vehicle repair estimates, but never actually get the car repaired anyway. They also file phony medical bills for treatment that never actually took place so they can pocket the money your insurance company pays out. Even if you’re fully covered and your insurance company takes care of everything, you still end up paying for this fraud in the form of increased premiums.

You’re not the only one. The auto insurance industry is well aware that these fraudulent acts take place. Every time a claim is filed, the insurance company performs an investigation, but scammers have gotten very good at perpetrating this type of fraud, and it’s difficult to catch them. The auto insurance industry pays out billions of dollars each year due to insurance fraud. The only way the insurance companies can recover these financial losses is to increase premiums across the board. So for every innocent person like you who becomes a victim of insurance fraud, thousands of others are also paying the bill for it.

How can you protect yourself?

The best way to avoid falling victim to this type of auto insurance fraud is to keep your eyes on the road—literally. Don’t get too caught up in adjusting your stereo’s settings. Don’t talk on the phone while you’re driving. Don’t turn around to talk to passengers in the back seat. There are a hundred other things you could be doing while you’re driving such eating, putting on makeup, or tying your tie, to name just a few. All these scammers need is for you to take your eyes off the road for a split second, and you become their next victim. Do whatever tasks you have to do before you start driving, and if something happens while you’re driving, like you spill your coffee, pull over to take care of it. Other than avoiding a fraudulent, staged accident, this will help you avoid a real accident.

Maintain a safe following distance, and never, ever tailgate. This is just asking for trouble, even when fraud isn’t involved. The car in front of you may need to stop suddenly for any reason, and if you haven’t left enough space between your vehicles, you’ll end up hitting that car, and being at-fault for the accident.

Keep an eye on the vehicles around you. If you’re driving behind a car full of passengers, and one of them seems to be watching you, give that car a wide berth. If that car seem to be matching your moves, like slowing down when you slow down, change lanes or turn off the road, at least temporarily. It’s better to go a few minutes out of your way by taking a side street than to become a victim of auto insurance fraud.

Finally, don’t shortchange yourself on coverage thinking it will protect you from fraud. Scammers who perpetrate these acts of fraud are interested in getting as much money as they can, but from the insurance company—not you. If you’re underinsured, they’re not going to take you to court. The last thing they want is to get lawyers involved, or invite a more thorough investigation. But they are going to file claims for the maximum amount possible, regardless of how much insurance you have.

Denying yourself coverage isn’t the way to fight fraud. If you get into a real accident, you need an appropriate amount of coverage to protect yourself financially, and to make sure any vehicle repair costs or medical expenses are covered. Be sure to get a policy with an appropriate amount of coverage that protects you and your loved ones.

“On Tuesday, August 4, GEICO instructed its ad buying service to redistribute its inventory of rotational spots on FOX-TV to their other network programs, exclusive of the Glenn Beck program,” said a spokesperson for GEICO Corporate Communications in an email to ColorOfChange.org. “As of August 4, GEICO no longer runs any paid advertising spots during Mr. Beck’s program.”

“We applaud GEICO and all of the other companies who have stepped forward to pull their ads from Glenn Beck,” said James Rucker, executive director of ColorOfChange.org. “Beck’s rhetoric is dangerous to the fabric of our democracy, and we are heartened that so many big companies feel the same way. We won’t stop here — we’re going to continue our fight to see that as many of Beck’s advertisers pull their support as possible.”

Personally, I’m pleased to see Geico take such a firm stance on an issue like this. The frontpage of reddit.com and many other viral news sites have been buzzing about this, and I have no doubt it’s doing wonderful things for Geico’s brand in the eyes of consumers.

The employees at the Bakersfield Geico office made him a stuff animal of the lizard, as well as having an appearance of someone in a lizard suit.

“It’s an easy request to grant and we live here and love to be a part of the community so we are happy to do it,” said Trenea Smart of Geico.

I wonder if he was expecting a small, cute version of the gecko, and was excited (or horrified) at meeting a human-sized version.