In an ideal world, we all want to live happily and don’t want to harm anyone for any reasons. But unfortunately, that’s not the case. Many a times, money becomes the driving motivation behind the thoughts and actions of people around us. When this happens, it opens the door wide open to insurance fraud. In this article, you will come to know about insurance frauds and the bad consequences of it in the auto insurance industry. You will also learn how to deal with it.

In an insurance fraud, there are two types of con men who perpetrates these crimes. The one who force you to hit them so that they can collect the insurance payments and the ones who destroy their vehicles so that they can collect the claim. Fire and theft often happens to be their favorite tool to commit an insurance fraud.

These insurance frauds are hitting the free auto insurance quotes that you find online. The phrase “free auto insurance quote” can be a bit misleading. What they are basically trying to say is that the quotation is absolutely free of cost, but you have to pay the full price for your insurance. The insurance quotes vary from one company to another company, but all of them are going to focus on the following key points.

1) Your age.
2) Your driving record.
3) Your car.
4) Where you live.
5) The economy.

Insurance companies are constantly raising their rates as the cost of the medical care and car repairs are going higher. The insurance rates are also getting higher as the number of claims they pay each year continues to climb. This means every fraudulent payment they make is another drop in the bucket that, when it overflows, is going to send your insurance payments climbing.

You can surely take a stand against all insurance fraudulent activities. Report insurance fraud when you see it, even if its someone whom you better know and is doing it. You can report such frauds to your nearest state insurance investigator and they will handle the rest. Remember, if they’re willing to allow you to pay for their fraudulent insurance claims, they weren’t much of a friend.

This entry was posted on Wednesday, September 7th, 2011 at 4:19 pm and is filed under Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.