Auto insurance fraud is increasing each year at an alarming rate, and it affects almost every policyholder even if you aren’t directly involved. For example, fraudulent insurance claims can increase your premium rates and extend your waiting time for insurance claims to be processed.
Additionally, insurance fraud can cost you a lot of time and money in conducting investigations and fighting illegal activities. Therefore, it’s essential to protect yourself from fraudulent insurance claims if you want to keep your policies low and maintain low rates.
What is car insurance fraud?
Auto insurance fraud consists of the following;
• Providing false information on an application to get lower premiums and insurance coverage
• Overstating the worth of stolen items or making a false claim of damaged property
• Hiring someone to steal your car to collect money for insurance
• Staging car accidents that result in false injury claims
At times, the above may be carried out without your knowledge by crime gangs.
Ways you can prevent auto insurance fraud
If you’re involved in a road accident, the other party involved may partake in insurance fraud to collect some extra coins. Luckily, you can avoid this by exchanging contact details with the driver, including their driving license number, vehicle registration, and proof of insurance. You should also ask for the names, addresses, and phone numbers of other people that are in the vehicle.
Alternatively, you can call the police and explain what has happened and make sure the report includes the officer’s name. This makes it difficult for a criminal to damage the car further and ask for a huge claim later on.
Unfortunately, accidents generate a lot of attention, and you may have some people at the scene telling you to visit certain attorneys or doctors. Always keep away from such individuals as they are more likely involved in insurance fraud.
Lastly, you can be a cautious driver by installing a dashcam in your vehicle to capture accidents that occur. This way, in case of insurance fraud, you have evidence of the event you can use during a court hearing.
All Star Insurance provides auto insurance services in Killeen, Texas. Contact us today to receive a quote.