Staged Auto Accidents and Insurance Fraud

ByTom Ando

Insurance fraud is an increasing problem nationwide costing companies over $70 billion a year. There are many reports of fraudulent insurance claims and staged auto accidents resulting in insurance providers in increasing car insurance premiums for drivers. The rising cost on premiums might seem unfair; however insurance companies need to cover the huge losses due to insurance fraud.

There have been increasing incidents where dishonest drivers will maneuver and cause innocent drivers to be involved in car accidents. Most of the time the accidents seem minor, but dishonest drivers will make all kinds of illegal claims including fake injuries and exaggerated car damage in order to collect more money.

These are some of the most common scams to keep in mind:

· Sideswipe. If you are driving in an inner lane and turning, be careful of dual left turns, where dishonest drivers will ram you on purpose if you drift into the outer lane while turning.

· Swoop and Squat. Usually involves two or more cars where crooks box in a victim's car while a third vehicle suddenly merges in front and jams on the brakes in order to cause a rear-end collision.

· Shady Helpers. A stranger may approach you after you have had an honest auto accident. The stranger may seem friendly while trying to help and convince you to use a certain shop for car repairs, or seek medical treatment from a specific doctor. This may be a setup as the car shop and doctor may provide you with inadequate service while trying to bill your insurance company fraudulently.

It is important to be wary of these schemes and to be on the lookout for potential trouble. Victims of will face increasing premiums, life disrupting claim settlements, police reports, lawyers, and even lawsuits. Costly claims can cause a good record to be blemished resulting in increasing premiums and potential policy cancellations. In worst case scenarios victims may suffer serious bodily injury or even death.

Things you can do to protect yourself from :

· Do not tailgate.If you allow yourself to have extra room in front of you, it will decrease your chances of being involved in a rear-end collision if the lead car has to stop abruptly.

· Pay attention. Keep a lookout for cars in front of you as well as in the back of you. Drive defensively if you are surrounded by aggressive drivers.

· Pull Over. A good way to avoid any accidents is to allow drivers who tailgate you to pass.

To avoid being a victim of car insurance fraud and staged auto accidents it is important to practice safe driving techniques by being a defensive driver. Remember to always stay alert by minimizing distractions such as cell phones while driving.

Article Source:http://EzineArticles.com/?expert=Tom_Ando

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Insurance: Car-Auto
Tom Ando

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchRecent ArticlesHow To Choose The Best Car Insurance DealRental Car InsuranceIn Depth Look: Pay As You DriveHigh Risk Car Insurance TipsAuto Insurance Laws And RequirementsLiability Insurance And Financial ResponsibilityThe Best Motor Trade Insurance Policies Are Up for Grabs Right Now!How to Get Cheap Auto InsuranceFacts About Car Rental InsuranceArizona Car Insurance - A Good Deal Isn't Hard to FindSubmitted On February 28, 2012. Viewed 2 times. Word count: 465.

MLA Style Citation:
Ando, Tom".".28 Feb. 2012EzineArticles.com.4 Mar. 2012 .APA Style Citation:
Ando, T. (2012, February 28). . Retrieved March 4, 2012, from http://ezinearticles.com/?Staged-­Auto-­Accidents-­and-­Insurance-­Fraud&id=6909691Chicago Style Citation:
Ando, Tom "." EzineArticles.com. http://ezinearticles.com/?Staged-­Auto-­Accidents-­and-­Insurance-­Fraud&id=6909691EzineArticles.com© 2012 EzineArticles.com
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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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Important Details Concerning Auto Insurance Fraud

ByJimmy Webster

Your cost for insurance could be cheaper if so many people were not out there trying to take advantage of insurance companies. Millions of dollars every year are spent on lawsuits and other court related fees due to insurance claims being sought out. Learn more about how scams are helping to make everyone's premiums higher.

Several popular scams are out there for luring innocent drivers into an accident that will end up being proved their fault. Incident scammers implement a plan surrounding you and causing you to look guilty in an accident.

Beware of another driver waving for you to pull into traffic in front of them. You may be pulling out into the path of a trickster trying to make a buck. The waving driver hits the one pulling out and will not admit to waving you into harms way. This is a common trick and has cost many innocent drivers and their insurance companies thousands of dollars.

Slamming into the back of another car is a terrifying way to come to a complete stop. However, paying close attention to those in front of you pays off in the event that person is a scammer. Many drivers slam on their brakes intentionally to cause the driver behind them to crash into their car. This is another common trick used by dishonest drivers.

Remaining calm and as focused as possible at the scene of an accident pays off greatly. Staying calm allows you top recall the steps you need to take for legal and non-legal reasons at an accident. Be sure to take pictures of the damage your vehicle did to another car. In this way, no further damage can be added to get more money out of the insurance company.

Consider the cost of medical expenses incurred during a car accident. Most accidents end up with the one or both drivers walking away injured. Making sure you have the coverage to help cover these expenses is important. Talking to an agent about the details of your liability policy is wise. Paying medical bills can cause you to lose your financial stability due to the high cost of patient care.

Learn more about defensive driving and how you can take a course for it. These are driving skills you will find valuable in the event you run into a scammer out on the roads. There are going to be times your quick thinking and driving skills can save lives and money.

You can find details about Virginia ins requirements and a summary of the most common automobile insurance coverage types on our site, now.

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Insurance: Car-Auto
Jimmy Webster

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesAntique Car Insurance - Who Give the Best Policies?Keys To Low Rates On Auto Insurance For Young DriversRecent 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 08, 2012. Viewed 6 times. Word count: 411.

MLA Style Citation:
Webster, Jimmy".".8 Feb. 2012EzineArticles.com.14 Feb. 2012 .APA Style Citation:
Webster, J. (2012, February 8). . Retrieved February 14, 2012, from http://ezinearticles.com/?Important-­Details-­Concerning-­Auto-­Insurance-­Fraud&id=6868829Chicago Style Citation:
Webster, Jimmy "." EzineArticles.com. http://ezinearticles.com/?Important-­Details-­Concerning-­Auto-­Insurance-­Fraud&id=6868829EzineArticles.com© 2012 EzineArticles.com
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