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Top Steps to Protect Yourself Against Auto Insurance Fraud
Car insurance fraud is fast becoming a huge problem in the U.S. today. These frauds could even cost a single state millions of dollars every year. And the sadder part to the story is not all people realize that this crime is happening right in front of them. People nowadays are pay high insurance premiums.
But are actually paying several hundreds of dollars more than they should be.
Automobile insurance frauds had accrued an estimated amount of $30 billion in 2004 and 2005 combined in claims alone. There's a documented $14 billion worth of false claims each year since 2004. And auto insurance fraud statistics is showing that this is happening in immense amounts even before 1996, when it is found out that 35% of the body injury claims were fraudulent. In 33 out of 100 cases, the accidents were exaggerated to a certain degree, although based on real accidents.
The Types of Auto Insurance Fraud
Fake Accident Reports.
Here, car insurance fraud handlers and accessories to the crime generate fake police reports and file phony insurance claims based on them. What constitute auto insurance frauds are corrupt lawyers and ordinary individuals acting either as injured victims or runners in the incident. And once the report is filed and processed, insurance proceedings are collected in the astounding amount of $900,000 in the maximum, including personal injury damages and medical treatments.
Staged accidents.
In here, two drivers intentionally collide with each other. Both drivers knew what is about to happen. They both agreed at the collision and had actually planned it. They could stage it on an empty highway or in a busy street, where there would be lots of witnesses. Either the case, this one's a bogus because both players are doing it for claims, more than anything.
Caused accidents.
Caused accidents are slightly different with staged accidents. Two drivers would still collide at each other, but this time, only one person knew what is about to happen. Fraudulent individuals initiate the wreck, and more often than not, they would make it to look like your fault.
This happens in a busy highway most of the time. You were following a car then suddenly a driver cuts the car in front of you. And so the car in front of you has no choice but to step on the break. And before you knew what's happening, you already rear-ended the car you are following. The car you bumped would then proceed to file an auto insurance claim with you as the unknowing victim.
Fake repair shop billing.
In filing for an automobile insurance, repair shops are supposed to declare correctly the amount of labor, as well as the replacement of the parts damaged in the accident. But for deceitful repair shops, they would bill several unperformed work with the insurance provider. They may also charge for parts not replaced but only repaired.
And because automobile insurance frauds happen everyday, either with your knowledge or not, you might be entangled in the whole thing making you a criminal yourself. So in order for you to protect yourself from such frauds, here are the steps you have to follow:
Continue to: Top Steps to Protect Yourself From Auto Insurance Fraud
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