The High Price Of Car Insurance
In the United States of America, insurance scams are growing at a fast pace. Insurance scams are not just limited to the US. Technological advancements have made it all the more difficult to catch the culprits involved in insurance scams related to automobiles.
Car insurance scams are perhaps the most common insurance scams in the US. Staged rear-end automobile accidents have become a trend today. What are staged rear-end car accidents? A car insurance driver will drive his car in front of another car and deliberately slam the brakes, thus forcing the other driver to rear-end the car insurance scam driver.
Car parts are only intended to last so long. Wouldn't it be nice if you could get a new engine or drive train just when the old one was wearing out? Some people do by conveniently having an accident at just the right time.
Some people will actually risk their lives and the lives of others to get a little money. They stage an accident at low speed; if all goes as planned, no one gets hurt. Then they claim serious, long-term injuries. The insurance company has to pay thousands in medical bills. They may even be able to get a civil lawsuit filed and make money off that, too.
Due to the growing number of insurance scams, insurance companies have started taking stern action against the scam drivers. Insurance firms, these days, thoroughly inspect the vehicles before giving money to car insurance holders. There are many insurance firms which have increased the premiums on insurance policies to deal with losses due to Car insurance scams.
Probably the most common example of fraud, though, is the person who gets into a minor accident and doesn't want parts just repaired, but actually replaced. They'll do some extra damage to the car to make sure repair isn't possible.
The car owners and drivers aren't the only ones causing problems, though. The repair shops can also be trying to make a fast buck. Why does it cost so much to get a car repaired after an accident? In part because the body shop will inflate their costs, hoping that no one will bother to check on the actual costs.
With all of this going on, insurance companies have to protect their interests. They do so in several ways. First, policies have deductibles. The rationale is that if the driver knows they will have to pay some of the costs, they will be less inclined to make a claim. The second way they combat fraud is to raise rates after an accident. Again, if a person knows they're going to have to pay more for their insurance after an accident, they may be less likely to try a scheme like the ones above. Finally, if all else fails, fraud is a crime, and they can prosecute.
That there are so many different kind of fraud, and so many people willing to commit fraud is amazing to me. It is so sad that people don't care about the consequences to other people, just to make some easy money for themselves. It's not fair that we have to pay for this abuse, but we do. Your high premiums and deductibles are a way to make back the money lost to fraud.
Article Source: http://www.search-raven.com
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