This scam occurs when the vehicle you are following is suddenly passed by another vehicle that "swoops" in front of it.

This causes the vehicle in front of you to stop abruptly, or "squat." The drivers of both the swoop and squat car planned the accident.

As a result, you are unable to avoid colliding with the rear end of the vehicle. Typically, the swoop car will never be seen again and the driver of the squat car submits vehicle damage and personal injury claims to your insurer.

Many times multiple occupants in the squat car will fabricate bodily injuries as well.

CarInsurance.com believes insurance fraud is one of the leading causes of higher insurance rates.

Comment Update: Any time fraud is committed, a party is stealing from the insurance company. In this example, the person that is committing fraud, is trying to get fraudulent repairs completed or injuries (whether inflicted by this occurence or not) fraudulently paid.