Stephen : Neveda : I keep on reading that the insurance auto insurance premiums are rising on account of frauds in most of our states like New Jersey, Wiscoinsin and now Michigan auto insurance debate on rates is going on. How do you know an car insurance fraud.

Response : A great question Stephen, let me give you an idea that comparing auto insurance for different states is also a good excericse if you are involved in this field or matter of interest, however the rates which would apply would be the rates of the state where you live. That being said the auto insurance frauds have very much in common in all states.

Insurance fraud costs all of us in the form of higher automobile insurance premiums.It is an offence under the federal Criminal Code for anyone, by deceit, falsehood, or other dishonest act, to defraud or to attempt to defraud an insurance company.

Common types of fraud or attempted auto insurance fraud may include:
1) exagratting the quantum of loss or the repairs of the car
2) lying about the way a loss occurred,
3) filing fraudulent automobile accident or damage claims,
4) including previously existing damage to a vehicle when submitting a claim,
5) withholding information about past accidents, traffic convictions, claims, policy cancellations or non-renewals, other insurance in force, and medical and disability history, and
6) receiving payments for treatments not received.
Most of the time it frauds ocurr when the professionals like the lawyer, doctors and even the mechanics or the appriasals at times cooperate with the clients for monetary benefits.

Auto insurance frauds cost millions of dollars and these cost are passed on the the customers in the form of auto insurance premium hikes. There are certain regulations and laws to prevent auto insurance frauds or any insurance fraud and these are :
If you are caught committing or attempting to commit insurance fraud if you :
• Your claim will be denied.
• Your insurance policy may be cancelled outright.
• You may pay higher premiums in the future.
• You may be denied insurance in the future.
• More importantly, the offence is punishable, on conviction, by a maximum of 10 years’ imprisonment for cases involving an amount over $5,000 or otherwise a maximum of 2 years’ imprisonment.


Share and Enjoy:
  • Digg
  • Facebook
  • NewsVine
  • Reddit
  • StumbleUpon
  • Google Bookmarks
  • Yahoo! Buzz
  • Twitter
  • Technorati
  • Live
  • LinkedIn
  • MySpace
  • MySpace

Tagged with:

Filed under: Car insurance comparisionCompare auto insurance quotesInsurance Procedures

Like this post? Subscribe to my RSS feed and get loads more!

Possibly related posts