Prevent yourself from auto insurance frauds. Get essential information how people try to cheat and understand how you can protect yourself from these frauds. You will get vital tips that help you to get rid of from these problems.
In recent years, auto insurance fraud has become a huge problem. Insurance is a must for every car owner to avoid financially distressing circumstances. Unfortunately, some people are taking advantage of this scenario with their cons and deceptions. Protect yourself from these frauds by understanding the matter thoroughly.
Fraud means illegal. Car insurancefrauds occur when payments made for insurance conditions are not legitimate. These kinds of claims may be created by an individual or a group of scammers.
1. Staged Auto Accidents
This kind of auto insurance scam can happen in several ways.
2. Auto Repair Shop Fraud
In this kind of fraud, the auto repair shop is a part of an auto insurancefraud scheme. The shop would claim to have repaired damaged body or have replaced broken parts which neither happened.
3. Car Theft
People involved in this deceit would intentionally leave the keys in the car for an accomplice to steal.
Fraudulent automotive insurance claims increase the cost of policy for all customers. Insurance companies raise their rate because of frauds and get their money back.
Hoaxers plan the accidents and involve innocent people. They try to keep inflicted injuries to a minimum (not fatal) but there are chances of serious injuries because of the impact of the scheme.
There are times that targeted victims lose their insurance coverage because of fraudulent accident. Insurance companies drop their new policy holders or those people who have multiple accidents.
Innocent victims involved in staged accidents may not be able to work because of serious physical injuries. The circumstances can cause them to lose wages.
Insurance claims require lots of time and paperwork. The innocent target can be forced to spend hours filling out claim forms and many more.
To avoid auto insurance frauds you should choose reputable auto insurance companies only. They will investigate and trace the fraud situation and provide you the best assistance.
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