How Auto Insurance Fraud Affects You

ByJoe Filer

What is Insurance Fraud?

There are many ways to commit auto insurance fraud. While you may think that it's only about those individuals who stage accidents with the goal of submitting an insurance claim and creating a monetary gain, there is more to it. Auto insurance fraud includes the overstatement of loss on insurance claims documents. When individuals obtain over-inflated cost estimates and submit them for the goal of making a gain on their initially legitimate auto insurance claim, they become complicit in a fraudulent activity.

Premium Increases Due to Insurance Fraud

Your auto insurance premium is determined based on many different factors. The underwriters who process your application will pull your motor vehicle report (MVR) and look at your driving history. In some states they may also review your credit report in order to further assess the risk you present. Finally they will look at your age, marital status and gender in order to make some further assumptions about your risk.

Insurance companies put all this effort into determining your premium so that they can insulate themselves from the financial damage that your potential claims can cost. They must charge a reasonable premium to you based on your risk so that they can continue to offer protection to all of their policyholders. Insurance fraud causes premium costs to go up because the insurance company is no longer able to simply look at an individual's potential risk based on their underwriting criteria because instead of accidents occurring naturally accidents are forced as a means of creating an income. This skews the underwriter's ability to assess risk and creates across-the-board premium increases. It can also result in your underwriting data sharing features with those who have submitted fraudulent claims, which can create an additional premium expense as you are seen as higher risk.

Tying Up the Claims Process

As insurance fraud becomes more and more common, insurance companies have to impose more stringent requirements on the claims process. Because underwriters aren't always able to predict risk of fraudulent claims it's up to the claims processing department to weed out the wheat from the chaff. That means that when you have a legitimate auto insurance claim to file you must jump through hoops that were developed simply to weed out fraudulent claims. This can take more time out of your life as you will need to provide supporting evidence for your claim and may need to wait longer to receive your claims check and get your car back on the road.

Increased Tax Burden

Believe it or not, fraudulent auto insurance claims can also increase your tax burden. Often, insurance claims involve a police report of some kind. And when the police are called out to a fraudulently created auto accident scene to take statements and record information, they are using taxpayer dollars to do so. The more fraudulent scenes they must attend to, the more manpower is necessary, and the more tax dollars are spent on unnecessary activities.

You may not be able to single-handedly stop auto insurance fraud but you can make sure that you aren't involved by always submitting accurate claims and reporting any suspicious behavior. To find out more about how you can fight insurance fraud and to compare auto insurance rates give us a call.

Joe Filer is President of Filer Insurance specializing in auto, home & business insurance in Miami, and surrounding areas in South Florida. Call 305-270-2100 today for a Miami car insurance quote.

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Insurance: Car-Auto
Joe Filer

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesThe Impact of Auto Insurance Fraud on the IndustryRecent ArticlesFacts Your Insurance Company Might Not Tell You AboutLearn How Teenagers Can Get Affordable Automobile InsuranceCan High Risk Drivers Get Affordable Insurance?Car Insurance Tips For The Modern DriverCar Insurance Quotes Come To FruitionHow to Get the Best Car InsuranceAcquiring a Car Insurance Quote Should Be an Informed ProcedureSomething About Automobile Collisions and Car InsuranceWhy You Can't Find Cheap Car InsuranceFactors That Affect Insurance PremiumsSubmitted On February 20, 2012. Viewed 6 times. Word count: 548.

MLA Style Citation:
Filer, Joe".".20 Feb. 2012EzineArticles.com.28 Feb. 2012 .APA Style Citation:
Filer, J. (2012, February 20). . Retrieved February 28, 2012, from http://ezinearticles.com/?How-­Auto-­Insurance-­Fraud-­Affects-­You&id=6893354Chicago Style Citation:
Filer, Joe "." EzineArticles.com. http://ezinearticles.com/?How-­Auto-­Insurance-­Fraud-­Affects-­You&id=6893354EzineArticles.com© 2012 EzineArticles.com
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How a DUI Affects Your Auto Insurance

ByCorey Joe

A driving under the influence charge and conviction can be really tough on all aspects of your life. From your job to your driving status to your freedom, it can have wide-reaching impact. With that said, a DUI also has a substantial impact on your financial situation through your auto insurance. Ignoring this is dangerous, since it is one of the most profound consequences of this crime. Ultimately it all depends upon how your charge is categorized and it depends upon how many you have had. Here is some information on how a DUI will impact your ability to get insurance and your insurance rates going forward.

The first question: How is it classified?

One of the first questions that you need to determine about your DUI is just how it is classified. This is very important for insurance purposes with almost every insurance carrier. For instance, if you have just been slapped with a reckless driving charge, then your insurance will go up, but not that much. There are many lesser charges that people can plead to that will not impact their insurance so dramatically. Only when it is finally classified as a DUI charge is your insurance going to see the real impact. For this reason, individuals should be completely aware of their situation and should also fight for lesser charges when possible.

The availability of insurance

If you have gotten a DUI, then you need to recognize that the first problem is going to be availability. Many insurance carriers choose not to mess with DUI convicts. They do not want the risk and almost all insurance contracts have a clause that allows them to drop you when you get a DUI. If you are currently under a plan with an insurance carrier, you should first run and check your insurance contract to see how they feel about the issue. If they have a clause that says they can drop your coverage, then you should prepare for being kicked out in the cold with that insurance provider. This will not always happen, but it is a very real option that must be prepared for carefully.

There will also be a large impact on the availability of new insurance carriers. You may have to seek out a specialty carrier that handles DUI convicts. This will limit your choices as a consumer and it will make the entire process more difficult than you might have thought. Though some standard carriers will give you a chance, the bulk will not. Understand this so that you can tailor your search toward those individual companies that are willing to work with you and your unique situation.

A re-classifying of your insurance coverage

You will also have to deal with a new type of car insurance. The insurance companies have what is known as high-risk insurance. You can no longer just carry on with the same old coverage. For many carriers, this is known as SR-22 insurance. It is insurance that has many stipulations and you can very easily lose this coverage if you make mistakes on the road again. Getting classified with SR-22 is tough because this will often stay with you for a period of five years. While normal insurance keeps things off of your record after three years, drunk driver insurance is different.

A hike in rate

Along with going to SR-22 insurance, you will see increased rates. The rate differs depending upon which company you are going with, but SR-22 is usually in the $5000 per year range for most people. This is a huge step up from the $1000 per year rates that people are used to. The significant increase is due to the added risk that an SR-22 driver brings to the table. This is going to be a fact of life if you are going to continue to drive after you have run into a DUI situation.

If you've been charged for a DUI in Maryland, contact a Maryland dui attorney immediately. The sooner you contact a Maryland dwi lawyer, the better chances are of keeping your driver's license.

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Insurance: Car-Auto
Corey Joe

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchRecent ArticlesWhat Influences the Cost of Auto Insurance for Students?Car Insurance Ratings And Reviews Help Find The Best Insurance For Your NeedsWhere Do I Find the Full List of Car Insurance Companies?Guide to Understanding Car Insurance RatesWhat Should You Know About California Auto Insurance?How to Do an Auto Insurance ComparisonHow to Find Cheap Auto Insurance for High Risk DriversSearching for Cheap Auto Insurance Coverage?Reasons Why You Need to Do an Auto Insurance ComparisonThe Benefits Of Reviewing Different Car Insurance FeaturesSubmitted On February 07, 2012. Viewed 8 times. Word count: 650.

MLA Style Citation:
Joe, Corey".".7 Feb. 2012EzineArticles.com.14 Feb. 2012 .APA Style Citation:
Joe, C. (2012, February 7). . Retrieved February 14, 2012, from http://ezinearticles.com/?How-­a-­DUI-­Affects-­Your-­Auto-­Insurance&id=6867241Chicago Style Citation:
Joe, Corey "." EzineArticles.com. http://ezinearticles.com/?How-­a-­DUI-­Affects-­Your-­Auto-­Insurance&id=6867241EzineArticles.com© 2012 EzineArticles.com
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How Different Circumstances In Life Affects Car Insurance Coverage

ByAllan Koenen

Most people never think about how their current life situation can affect their car insurance. By learning about every detail of your policy, you can earn savings that might surprise you. Check out these facts of life and see which ones can help you save on your premiums.

Most everyone, especially parents of young drivers, know the cost of insuring a teen. Anyone under the age of 25 will have higher premiums. This is due to the fact a teen has simply not lived long enough to gain the driving experience needed to be consider a responsible driver. Defensive driving courses and good grades in school can help to lower the cost of teen insurance.

While teen drivers have a ways to go in earning some discounts, seniors can bask in the enjoyment of having earned those rights. However, seniors are also consider to be a high risk as well due to the side effects of aging like hearing and vision loss. Seniors should make sure to discuss with their agent about safe driver courses designed just for senior drivers.

Divorced couples can experience many confusing dilemmas when it comes to their car insurance coverage. This is especially true when there is an accident and the car is the name of their ex-spouse. Learning how to make correct claims can be confusing business. Experienced and qualified agents can help couple learn the steps they should take for their coverage to simpler.

You may have a friend that drives your car as much as do. In this situation, you should discuss with an agent about adding that driver to your policy. If there is ever an accident while that person is driving, you will not have to worry about legal troubles. In fact, with most companies, you can insure as many additional drivers as you would deem necessary.

Members of the military have different rules governing some aspects of their coverage policy. If you have questions about specific parts of a policy in relation to being in the military, your agent can be helpful. Every state has different rules and regulations regarding military members and their car policies, so making sure you know the requirements in your area is important for you to drive legally.

No matter what your personal circumstances are, making sure you learn how they affect your insurance is important to experience the greatest amount of savings. Check out the discounts and savings you may be missing out on by talking to an agent today.

Breaking news: Conn. Disaster aid announcement underscores need to review ins coverages. You can find details about the reasons why it's important to be sufficiently insured and more information about Wisconsin auto insurance requirements, now.

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Insurance: Car-Auto
Allan Koenen

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesTop 5 Questions You Should Ask Yourself Before Buying An Auto InsuranceRecent ArticlesHow Save Money On Your Auto InsuranceTips on How to Pay for Car InsuranceWhy You Should Own a ConvertibleChoosing a Good Auto Insurance CompanyTips on Getting Auto Insurance Quotes OnlineThe Steps For Filing A Car Insurance ClaimTheft of Personal Property From Car - Does Your Insurance Cover It?Learning From A Vehicle Insurance OverviewHow to Choose the Right Car Insurance PlanWhat Information Do I Need to Compare Car Insurance Online?Submitted On January 13, 2012. Viewed 6 times. Word count: 417.

MLA Style Citation:
Koenen, Allan".".13 Jan. 2012EzineArticles.com.26 Jan. 2012 .APA Style Citation:
Koenen, A. (2012, January 13). . Retrieved January 26, 2012, from http://ezinearticles.com/?How-­Different-­Circumstances-­In-­Life-­Affects-­Car-­Insurance-­Coverage&id=6815345Chicago Style Citation:
Koenen, Allan "." EzineArticles.com. http://ezinearticles.com/?How-­Different-­Circumstances-­In-­Life-­Affects-­Car-­Insurance-­Coverage&id=6815345EzineArticles.com© 2012 EzineArticles.com
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