Car insurance fraud is primarily made up of any dishonest dealings you have with your car insurance company. If you provide false or misleading information during the quote process, you will be issued a policy based on lies. This is car insurance fraud.
If you omit important information, this is car insurance fraud. If you tell a lie in the process of making a claim against your insurance policy, this is also car insurance fraud. There can be serious consequences to committing such fraud.
Read on to learn all that can be characterized as auto insurance fraud and then to find the very cheapest auto insurance rates just enter your zip code above!
Different Types of Claims that Constitute Car Insurance Fraud
Staged accidents are the most costly and often the most serious of car insurance fraud incidents. In this type of situation, crooks often cause accidents that look like the other party is actually at fault in order to make false claims and make money off the insurance company of the other party. Often dishonest professionals such as lawyers and doctors are even involved.
False claims include everything from making a claim for damage that was caused intentionally or in some manner not covered by insurance to making double claims and even claiming for damage or injury that never actually occurred.
Premium evasion is another type of insurance fraud. It can be simply making fraudulent statements or omitting information in order to save money on your car insurance premiums. It may also include very intentional actions like attempting to insure your vehicle in an area with a lower insurance rating than the one in which you actually live and drive. Not listing high risk drivers such as teenagers can also be considered fraud.
Consequences of Car Insurance Fraud
The consequences of car insurance fraud can be very serious or relatively light. It depends on a variety of factors, such as the seriousness of the fraud, whether or not it was a simple misunderstanding and if it is a first offense.
Organized fraud or staged accident whereby an individual is actually involving others, putting people in danger and bilking insurance companies out of significant amounts of money are typically punished with jail time and heavy fines for retribution. If an individual has committed insurance fraud in the past, fines and other forms of punishment will be much higher than if he or she is a first-time offender.
If the car insurance fraud was committed simply because the person was ignorant of certain laws or it was done unintentionally, the consequences may simply entail a cancellation of the policy in question. If the fraud was of a serious nature, regardless of the person’s intentions, he or she will likely face fines in addition to the cancellation of the policy. Denial of claims is another very common result of fraud, as it is often discovered only when claims are made.
Finding Car Insurance Following Car Insurance Fraud
Be prepared to pay higher rates for car insurance coverage following a charge of car insurance fraud. Even in the relatively mild cases of fraud where the person has simply made a mistake and inadvertently committed fraud, it will often impact their premiums for years to come.
One of the standard questions asked by insurers when you are looking for a car insurance quote is if you have had any gaps in coverage. If you have committed insurance fraud, you will have had your policy cancelled, often retroactively. This means that there is indeed a gap in coverage. For many insurers this is seen as an increase in the risk factor you present. If you have actually been charged with fraud involving an insurance claim or had a fraudulent claim denied, it will be a part of your insurance record and will be reported to companies who may be offering you coverage. This indicates that you are a high risk car insurance candidate.
As insurance is all about managing risk and transferring risk to a third party, when insurance companies deem you to be high risk, you are faced with high insurance premiums. There may even be companies who will refuse to offer you any coverage, leaving you with the high-risk insurers as your best bet.
No matter what the case, if you have car insurance fraud in your past, you need to shop around carefully and thoroughly in order to get the best price quote possible. As you are shopping around, treat online car insurance quote tools as if they were human agents. You must always provide 100% honest answers to questions asked in the process of looking for an auto insurance quote. If you neglect to do so, you are putting yourself at risk of committing further fraud which will lead to even more problems when looking for car insurance coverage.
If you are in the market for car insurance following car insurance fraud, start by getting a variety of quotes from as many companies as possible. By being upfront with insurers you will have the best chance of finding a good policy at a reasonable price to protect you. Put our online car insurance quote tool to work for you in order to quickly and easily get all the quotes you need to find that ideal policy. Enter your zip to start finding the best car insurance now!