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Automotive insurance fraud is a very specific thing with very real consequences. Learn what constitutes auto insurance fraud with help from an automotive insurance professional in this free video clip.
Auto insurance is a must for protection from financially devastating circumstances. At the very least, liability insurance pays for damage you inflict on another motorist so you don't have to pay out of pocket. Depending on your policy, it often pays for car repairs and medical bills if you are in an accident. It may also reimburse you for auto theft. Unfortunately, there are criminals who take advantage of this protection.
Automobile insurance fraud is a massive problem. The Insurance Research Council says it aqdded up to $6.8 billion in 2007. That number is most likely too small, according to the Edmunds automotive research website, because it does not include dropped or dismissed claims. It also excludes related costs like investigator salaries, investigative agency budgets and the price of legally pursuing cases. Insurance fraud doesn't just impact companies. It trickles down to consumers in several ways.
Car insurance fraud is a serious crime. It costs insurance companies millions of dollars, and part of that cost is passed on to drivers. It occurs when an owner tries to file a bogus claim, such as for a stolen vehicle that really has been abandoned. There are many ways to report this fraud, and doing so does drivers and the insurance companies a big favor. The reporting process only takes a few minutes and can be done from anywhere if you have a cell phone.
Owing a car, whether for fun or out of necessity, is a big responsibility. Regular checkups and maintenance are necessary in order to protect your investment and keep it running for a long time. Depending on how often and how far you drive the vehicle, the risk of potential damage or an accident is always looming. In order to be able to pay for damages or to replace the car, many people purchase car insurance. Many states have laws that require car owners to purchase insurance in order to offset losses caused by accidents and theft. Staging an accident or…
Auto insurance fraud has become a huge problem in the United States in recent years. It costs everyone in the form of higher insurance rates. Protecting yourself against auto insurance fraud starts with knowing how criminals stage accidents, driving defensively, and what to do if you are in an accident.
