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What is Car Insurance Fraud and How To Prevent From It?

what is car insurance fraud

Car insurance fraud is the second strictest crime in the United States. What’s more, it’s much more regular than you might suspect – specialists say that more than 20 percent of substantial harm cases and 10 percent of auto harm claims as the aftereffect of auto crashes are false.

What is Car Insurance Fraud?

Car insurance fraud occurs when a person cheats an auto insurance company. The real aim to cheat is to gain some financial benefits. Auto Insurance fraud can occur for example if a person do a mistake when filling out paper work or doing a planned road accident. These forms of fraud are genuinely extra intolerable than others. But not only cheaters can be accused of the fraud, some innocent people can also be charged of the fraud if they are:

Not giving the statistics/data concerning to the use of the car to the insurance company.

Changing their living address without informing the organization.

Some most serious fraudulent activities include:

Doing a planned accident

Reporting a false repair cost to the company

Buying an approach after a mishap has officially happened

Being discovered liable of auto insurance fraud, unintentional or not, can bring about cancellation of policy or punishment according to the law in your country. The cancellation of policy is very risky and in such extreme cases you will have to locate a new insurer as soon as possible.

How To Prevent Auto Insurance Fraud Cases?

Even simple fraudulent activities can lead to major problems so you have to be very cautious. To prevent any kind of trouble in future work with a honest agent to buy and maintain your coverage. You can keep yourself away from illegal insurance cases if you get the help of a professional agent.

Furthermore, the best practice is to drive safe! Unfortunately, if an accident does occur then call the police immediately. Insurance agents deal with car accidents on daily basis, so call them and if you have some doubts of fraud, then don’t hesitate to tell it to your agent. Take snaps of the general scene and report any fishy thing to the fraud bureau.

Category: Insurance

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