How Does Car Insurance Fraud Costs Us Millions?
One reason that the price of auto insurance seems to always go up is due to the massive amount of fraud
. People are running scams to stage fake accidents in an attempt to get an insurance settlement. Read through these examples of auto insurance fraud so that you can recognize the potential for being caught up in one.Staged Car Accidents
Picture a quiet on ramp to the expressway. Three conspirators stage an accident where the first car stops short, gets rear ended (on purpose by the middle car) and the third car serves as witness to the accident for the police report. Another version of this scam involves you as an innocent middle car that gets cut off and boxed in so you have nowhere to go except to ram the car in front of you. Meanwhile, the car behind you is also in on it and serves as witness that it was all your fault. Ouch.
Fake Stolen Vehicle Reports
In the tough economy we have experienced the last few years there have been other types of car insurance fraud. For example, some people who can't afford their car payments stage a stolen vehicle situation by driving their car into a lake, never to be found until sometime down the road.
Inflated Repair Bills
Another type of fraud involves car repair shops and inflating repair estimates. For example, if an accident victim brings their car in for repair where the at fault driver's insurance is paying for the claim, the repair shop may offer to inflate the repair estimate by the amount the victim has to pay out of pocket to rent a car while theirs is in the shop.
Florida Tops List Of Fake Accidents
Sheriffs in the state of Florida have issued consumer warnings because Florida is number one for this type of crime. The reason is the no fault insurance law in Florida. This type of insurance helps expedite claims processing without a lot of expensive court cases but also opens the door to fraud.
What does this mean for you and me? We all pay higher auto insurance premiums as a result of this fraud. Also, businesses that end up with hikes in their insurance costs end up passing on those costs to their customers by raising their prices.
Reporting Insurance Fraud Anonymously
The first step to preventing fraud is to be aware of it. The best place to contact if you are aware of a fraud that you wish to report is the National Insurance Crime Bureau. You can report information anonymously to NCIB at 800-835-6422.
by: Nathan Randall The Laws That Florida Car Insurance Companies Must Abide By Things to know about online credit card processing What To Do If You Have Car Insurance Questions Merits Of Trading The Automobiles Parts Within Online Process Continuous Innovations And Changing Trends In Automotive Industry Korean Auto Parts - Robust And Reliable Replacements! Car Rental Price Comparison And Rail Booking by:James Druman But How Do You Know Which Skin Care Product To Buy? Meet and Greet Luton Airport Parking Could Avoid Your Automobile parking Worries. by:Luton Airport Meet And Greet The Us Goose Cardigan Women Of All Ages Is Frequently A Beautiful Apply For Second Chance Car Loans Through Online Lenders- Know Why? Advice For Brain Injury Lawyers Handling Auto Accident Cases Insurance For Courier Vehicles