Car insurance has become an absolute necessity with more and more cars plying on the road today. With more cars, there has been an upsurge in the number of fraud cases. Auto insurance fraudsters will either report false damages to their carrier or will exaggerate the worth of damages to gain more in terms of compensation from them. These people are usually considered to be the insurance con artists.The compensation offered by the carriers to replace damaged auto body parts may often cause policyholders to enact such frauds.
The temptation to enjoy more funds from the carriers may even cause policy holders to get involved in more complicated frauds. They might find a number of ways involving careless driving, torching their cars or pushing it down a hill to cause damages to their cars and then claim the money from the insurer. These acts would often leave them with opportunities to evade their loan repayments. Another risky way of committing insurance frauds is to collide with a vehicle in such a way that it appears to be the other party's fault. This is a serious offense since it may cause people to lose their lives.
It's a common practice for such con artists to leave their vehicles unlocked for hours. They will never forget to put the keys inside the car and leave the car at any eye-catching place. This gives them an opportunity to claim for compensation once their cars get stolen. This is also a serious fraud when these drivers will plan such thefts in a group.
With an increase in number of insurance frauds, the carriers have become more stringent towards developing their insurance packages and carrying on their investigations prior to a claim settlement. They have resorted to a number of techniques like installing the lie-detector to analyze the different pieces of data and highlight the irregularities. Once proven guilty of fraud, the con artists may need to pay hefty fines to the carrier or may even get their policies canceled. They may get blacklisted with all insurance carriers or may even land up in jail.
You may study a few simple points in order to protect yourself under circumstances when you become a fraud victim-
- The different types of insurance fraud
- Penalties for exaggerating your damages
- The case studies associated with lawsuits and trials
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