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How Car Insurance Fraud Can Affect You

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Vehicle insurance companies are forced to pay out millions of dollars in fraudulent claims every year. These claims can range from staged accidents to embellished injury claims, from false pedestrian accidents to intentional vehicle arson. Even if you've never been a victim of a staged accident or participated in these dishonest actions, you are still feeling the effects of car insurance fraud.
Everyone who operates a motor vehicle needs insurance in order to make sure medical bills and the cost of repairs are covered in case of a real accident. Because of these fraudulent claims and staged accidents, insurance companies are required to hand over money. That, in turn, forces the insurance companies to raise insurance premiums for honest, law abiding citizens. The rates you are paying for car insurance can go up to cover the losses that stem from fraudulent activity.
Insurance companies are backed into a corner when it comes to confirming weather the damaging activity was fraudulent. If they fight the claim, they may have to spend even more money on lawyers and court fees. In the end, insurance companies are more likely to pay a claim and settle it out of court than they are to endure a lengthy and costly legal battle. However, insurance companies are now hiring teams that specialize in spotting illegal and fraudulent activity. Together with police investigators, these teams can decipher even the most elaborate insurance fraud scams and spot fraudulent claims.
When driving, it is important to be aware of your surroundings so you don't become a victim of car insurance fraud. Be on the lookout for motorists that follow too closely or place their vehicle right in front of yours. Try to maintain a safe distance between vehicles and keep your eyes on the road. Often times, scammers wait until an unsuspecting driver turns their head or looks at the radio before slamming on their brakes, causing the victim to slam into the back of them. When this type of accident occurs, the victim is found at fault because of following too closely. Then the accident stager can exaggerate injuries such to further gouge you and the insurance company of money.
You're spending a lot of money on your car insurance premiums, and dishonest scammers are taking advantage of the high payouts they can receive from the insurance companies. Always keep a pen and paper in your glove box or center console so you can have a written account of any accident you are involved in. Also use your camera phone to take pictures of the accident immediately after it happens. If your phone doesn't have a camera, buy a disposable camera and keep it in your vehicle. It is important to have documented evidence to help investigators determine if the accident was real or staged.

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