Paying for the fraud you did not commit


Paying for the fraud you did not commitThere are consumers who are unhappy about the rising auto insurance prices which are attributed to the increase in the number of auto insurance frauds. Most of them also believe that this is a reason that is being cited without enough proof to substantiate it. For those who feel that this is all hogwash, here is a reality check.

The number of fraudulent auto insurance claims is indeed increasing not just in one state, but across the country. There is also evidence to prove the same. Numerous fraudsters who allegedly ran an auto collision ring by staging accidents and filing falsified claims were arrested late in the month of August. What comes as a surprise, is the people who were actually a part of this ring. One of those arrested was a police officer from Peel. The others arrested include the directors of rehab clinics in the country and also tow truck operators. As a team these people staged a total of 9 accidents and filed falsified claims to avail medical payouts, home care, benefits and assistive devices. The amount processed by the insurance companies in totality towards the claims came up to $2 million.

In addition to these, there have been many other rackets that have been unearthed with people being arrested in large number. In a few parts of the country, there are people earning their living by staging these accidents. What they don’t understand is the repercussion of these accidents on people who are not even aware of such scams. One of the states in which the insurance premiums have increased sharply due to the increase in number of fraudulent claims is Florida. Though the insurance companies have brought in a lot of newer rules to tackle such cases, the impact is yet to be seen.

Most of the people who run staged accident rings not just put their lives in peril, but also risk the life of the people they collide with. In a majority of cases that have been unearthed, the fraudsters overtake the victim suddenly from the left, leaving them stunned and causing the collision. The conmen then get off the car and claim that there have been a number of injuries caused to the soft tissues of the body that are difficult to ascertain. When insisted, these conmen go to fake ‘doctors’ who produce expensive invoices for the treatment which can be used to file auto insurance claims.