Insurance Fraud: Know the Costs

Insurance fraud can be pretty , and sadly, it happens all the time. You may not know this, but 10% of property and/or casualty insurance claims are fraudulent- and this unfortunately affects your car insurance premiums as a consumer.For instance; if you get in an accident and the other person puts in a claim, you can’t be sure that everything being claimed actually pertains to the accident and isn’t fraudulent of some sort.

It’s also said that 25% of all bodily injury claims are a result of vehicle crashes. You’ll generally see this kind of fraud more often. Aside from the typical soft fraud (faking injuries and damage to your car) there’s also “hard fraud”- the kind you see in movies:

  1. Sending your car off a cliff
  2. Having an arsonist set fire to your vehicle
  3. Putting a brick on your gas pedal and sending it into a lake

This may sound like common sense but… don’t do this. Don’t get involved in this. Why contribute to all the fraudulent activity in the insurance world? You’re only driving up your own (and everyone else’s costs). It may work out in the short run (especially if your goal is to get out of an upside down car loan) but it’s certainly not beneficial when you look at the big picture.

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