Types Of Auto Insurance Frauds
As per the national bureau of insurance fraud the number of staged accidents is increasing rapidly.
Types of auto insurance frauds. Soft insurance fraud occurs when a legitimate claim is exaggerated for financial gain. Some owners commit fraud by dumping their vehicles. Car insurance fraud is a sneaky and complicated business but steps are being taken to fight it. Fighting car insurance fraud.
Types of auto insurance frauds. Harm to the victims credit rating. Staged accident this is where two people will intentionally crash into each other usually out of sight maybe on a quiet road or on a driveway. Each year about 15 million air bags inflate during crashes saving thousands.
According to the fbi insurance fraud costs the average american family between 400 and 700 more a year on their insurance premiums. By being aware of these you will also be able to help prevent them. Learn how to protect yourself from the worst car insurance frauds. Insurance companies across the united states reported an increase of 102 in this kind of fraud between 2008 and 2011.
Additional effects of car insurance fraud can include. Elaborate schemes set up to scam people and make money off your insurance without you even realizing it. First if a legitimate owner sells the vehicle to a body shop for parts it could be reported as stolen. There are two types of car insurance fraud that have different implications and levels of severity.
Injuries andor fatalities to the victims. Resources used on traffic closures investigations and law enforcement. Keep reading to discover the most common types of insurance fraud in the united states including types of car insurance fraud that may affect you. Wave down side swipe panic.
When we think about insurance fraud many things come to mind. People may also look to purposely smash up a car using tools like a hammer and make out they have had an accident. Types of car insurance fraud. Types of car insurance fraud counterfeit air bags.
Some common kinds of staged accidents include. These include soft fraud and hard fraud. Here are examples of extreme insurance fraud. American insurance companies lose millions of dollars to car insurance fraud every year.
It is the more minor offense of the fraud types and it also the most common type of car. Below are the 10 most common types of insurance fraud.