Protect Yourself From Auto Insurance Fraud
Protect yourself from Car Insurance Fraud
If you're like most people, you don't wake up thinking about auto insurance fraud. It's like tornado damage or losing you house in a wildfire. It doesn't hit home unless, well... unless it hits home! But what exactly is auto insurance fraud, more importantly, how can it affect you and your family, and how do you keep it from happening to you?
What is Auto Insurance Fraud?
According to current statistics, car insurance fraud is the second biggest white-collar crime in the country. It is responsible for the loss of $29 billion dollars a year, second only to corporate fraud which causes even greater financial loss to investors and does immeasurable damage to the U.S. economy.
Auto insurance fraud is a massive, thriving business for those desperate enough to try it. These scammers often get away with fake claims. The money they scam from insurance companies ends up costing those companies billions and that trickles down to costing you in the form of higher car insurance premiums.
There are many types of auto insurance fraud, but basically, this type of fraud acts to deceive an insurance company for monetary gain. It can appear when normally honest folk decide to manipulate the truth to their advantage regarding a claim, all the way up to organized crime syndicates who bilk insurance companies out of many millions of dollars.Â
The latter has become extremely sophisticated, making it nearly impossible for insurance companies to detect the majority of these false claims.
Types of Auto Insurance Fraud
You might be surprised at how many different scams exist to separate auto insurance companies from their money. One thing is certain: all of these scams can cause you to pay higher premiums.
How to Protect Yourself from Auto Insurance Fraud
Remember that a big part of auto insurance fraud revolves around nefarious people who will try to get you involved in a car accident that they have staged. Here are a few tips to help you avoid such calamities:
