The leading auto insurance provider Lloyd’s, reported a steeping incline in fraudulent claims. This can be a chief reason for elevating auto insurance premiums. What is more alarming is the fact that the fraudulent car insurance claims are on the rise across the globe.
As the insurance companies are exposing escalated number of fake claims, the situation is deteriorating around the world. The Insurance Information Institute of the United States approximates that fraudulent claims constitute over 10% loss each year in the auto insurance industry.
How would these frauds affect us when we review or compare auto insurance quotes?
Examples of common frauds include claims for injuries due to auto accident and sidewalks accidents, which are the results of non-insured action like absolute conning and fights. A perfect example includes a 45 year old woman claiming for injuries that made her cripple and forced her to quit her profession. Nonetheless, she was detained for obtaining the benefits from the workers’ compensation programs while serving at a sports camp.
Other bogus auto insurance claims involve a man who bulldozed his car off a cliff in an attempt to receive claim under his insurance policy.
Lloyd’s research states:
“The Insurance Research Council discovered that 1 in every 5 auto insurance claims in the New York City region involves a percentage of scams while 1 in 3 seems to be exaggerated.”
Due to such deceptions, you are bound to find higher auto insurance premiums. Insurance companies are spending more on auto insurance claims and since the car insurance rates are linked with insurance claims, the insurance rates automatically incline. Further, the insurers are endowing a major chunk in technology for detecting frauds.
With the introduction of new technology and methods in prevention of auto insurance frauds, insurance companies all over the world are hoping to eradicate or reduce fraud claims. We as consumers, can prevent fraud by joining the mission of prevention of fraud, and obtain low auto insurance rates.
Remember, it is ultimately we, who pay the premium amounts in terms of higher auto insurance. Why pay more, when you can pay less, by not engaging in fraudulent claims. Let your Insurance Company know that you are on their side in fighting this war.
