| Having The Proper Knowledge Of How Car Insurance Scams Is The Key |
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| Written by Steve Jonas |
| Tuesday, 02 November 2010 15:42 |
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You may be unaware of what a car insurance scam can do to you; you may be dealing with a grave problem if you become a victim of scams. A rough estimate of how much are scams cost the insurance industry today showed that about ten of billions of dollars every year are lost due to scams. It affects both the insurance providers as well as the consumer. Knowing how scams work can be a good way to avoid being the victim of scams.
You may be unaware of what a car insurance scam can do to you; you may be dealing with a grave problem if you become a victim of scams. A rough estimate of how much are scams cost the insurance industry today showed that about ten of billions of dollars every year are lost due to scams. It affects both the insurance providers as well as the consumer. Knowing how scams work can be a good way to avoid being the victim of scams. Most people think of the insurance companies being the real victims when accidents are staged or false claims submitted, but there is often a consumer victim as well. When someone deliberately causes an accident to make someone else look at fault, they also have expenses and risk having their auto insurance rates going way up or even being cancelled. A common scam is the rear end accident. In many states, the rear car is almost automatically at fault so this is an easy car insurance scam to commit. Just get in front of an expensive and presumably well insured car and slam on the brakes. With cheap car insurance available to most people, this is easy for an individual to do. That expensive car will have no time to stop and eventually crash to the scammer. Because there cheap car insurance available, scammers can both victimized the insurance company and other people. Most of the time, the scammers work with others corrupt people. Car damage typically is not that much but when the scammer recommends his/her preferred body shop is involved, be aware because it is possible that the body shop will over price you. Aside from that the scammer may claim that the cost hospitalization he/she should get should be this amount. In simple words, scammers do not operate alone; they have partners such as corrupt body shop and even doctors Getting as much documentation at the scene is critical to insure you are not being scammed. If at all possible get pictures of the scene and all cars involved and pictures of the drivers and alleged victims. It's also wise to get a police report at once, since they often recognize car insurance scams and can be wary of the facts. It is not just in the road where you can encounter scammers; you can also encounter them while buying a policy especially from a fly-by-night company. This company collects the premiums for few months but will disappear all of a sudden. Even if this kind of scam is not frequent, it is still best to check the insurance company's history as well as its credibility before engaging in any business with them. You may encounter the so-called "upside down" on your insurance coverage. The upside down term is about the amount of your loan being higher than the actual worth of your car; in this case, you would be indebted money on a total loss to the insurance company. This is not a real scam but it happens especially if you do not have any idea on your insurance coverage, Scammers also uses inflated price. This happens when there are so-called sweetheart deals between auto dealers and certain insurance company; they will offer you the insurance along with your loan. This will cost you more than the real amount. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. If you find this article useful, please visit my website that talks about car insurance quotes and online car insurance quotes. |