Getting into a car accident comes with a long list of concerns and worries, from the possible injuries and damaged car to the auto insurance claim. Add to that the possibility the accident was premeditated from people that want to lure innocent law-abiding drivers into an auto insurance scam and get paid money they don’t deserve. Unfortunately, statistics show that insurance scams, and fraud in general, is the most troublesome financial crime in the country, after tax evasion. In fact, experts reveal that a total of 10% of auto damage claims and a striking 20% of bodily injury claims related to vehicle accidents are fake.
Higher premiums, lots of legal issues, and a blemished driving record is what drivers who fall victim of auto insurance scams are up against. Insurance companies, on the other hand, are called to pay out astronomical sums each year to settle claims that are just not real. For the criminal minds behind auto insurance frauds, this is a great cash source that is difficult to ignore. And, all that ends up in an extra couple of hundreds of dollars on people’s insurance policies.