Many people believe that auto insurance fraud does not concern customers or clients of automobile insurance. But you are mistaken. Because of auto insurance fraud, you are paying higher automobile insurance premiums. You are constantly looking for low auto rates from insurance companies without knowing the difficulties faced by auto insurance providers.
According to the insurance industry, the annual cost of insurance fraud claims amounts to $30 billion. This includes all frauds involving property and casualty insurers. Auto insurance frauds make up the bulk of losses that accumulate from auto insurance fraud. Insurance companies base their insurance premiums on the expense incurred. Claim is a large part of that expense. This fraud ultimately lands the customer in the pocket. You will have to shop for a low premium auto insurance premium each year as the automobile insurance premium goes up.
On Monday, 5 October 2009, Teresa R. Gallop from Virginia was sentenced by federal court. Gallop, 41, was convicted in federal court on Monday 5th October 2009 of manslaughter and 60 other felonies. Gallop was awarded approximately $50,000 in payments for insurance.
The tricks behind automobile insurance fraud are well-crafted. It is a game played between unethical professionals such as the lawyer, doctor, and claimant to create an environment where the injury is exaggerated in order to make money. While the fraud does not aim to repair the vehicle, it is more common for fraudsters to pretend that they have suffered injuries or are disabled. These accidents are cleverly staged at locations that are not crowded. Also, the targets are usually expensive and new car drivers. The vehicle in front of your would suddenly stop and you would be trapped in a rear-end collision. There are many ways to stage fraud accidents. It takes time before each case can become interrelated and the perpetrator is caught. To save your life and national wealth, each of us must be aware.
As a customer and prudent person, you must avoid falling for any fraud or being drawn into any actions on the part others to create situations or ploys for staging accidents in order to make quick cash from insurance. These are accidents that are used to your own advantage. Here are some tips to avoid frauds:
Always drive defensively when you’re driving your car. Some drivers intentionally cause an accident to make it easier to get car repairs or personal injuries.
Ensure that you have the names and contact information of all passengers in your car, as well as the details of the driver, in case you are involved in an accident. It is also a good idea to get the names of witnesses around the sconce.
Immediately report any accident to your insurance company. As everyone wants to avoid any problems with authority, this would lower the chance of fraud.
– If you suspect fraud, you can notify the agent or insurance company so they can take appropriate action. You can also send them an email or report it to customer care at the insurance regulators.
– Know the different ways car insurance fraud can happen. You can find useful information in insurance blogs, magazines, and institutes of insurance education.
Insurance professionals are now taught how to manage fraud. Fraud is a serious problem in any industry. Follow these steps to reduce your insurance costs. You will be able to obtain low auto insurance rates and a lower automobile premium. Low auto insurance rates will be possible if auto insurance frauds are reduced.
