The High Price Of Car Insurance

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by Susan Tanner

When people complain about car insurance, they usually are convinced that their insurance company is charging huge premiums and then not covering any claims. You may be surprised that the real problem isn’t the insurance companies, but people who try to scam the companies.

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Car insurance scams are perhaps the most common insurance scams in the US. Staged rear-end automobile accidents have become a trend today. What are staged rear-end car accidents? A car insurance driver will drive his car in front of another car and deliberately slam the brakes, thus forcing the other driver to rear-end the car insurance scam driver.

Car parts are only intended to last so long. Wouldn’t it be nice if you could get a new engine or drive train just when the old one was wearing out? Some people do by conveniently having an accident at just the right time.

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People are willing to do even more outrageous things, though. For example, a driver will get into a low-speed accident on purpose, just so they can file for thousands of dollars in medical costs. Sometimes they can even get a civil court judgment, too. In reality, the accident was entirely planned and they’re not hurt at all.

Due to the growing number of insurance scams, insurance companies have started taking stern action against the scam drivers. Insurance firms, these days, thoroughly inspect the vehicles before giving money to car insurance holders. There are many insurance firms which have increased the premiums on insurance policies to deal with losses due to Car insurance scams.

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The World Wide Web abounds in information pertaining to insurance scams. You can read articles on auto insurance scams on the Internet. You can also talk to insurance professionals about various automobile insurance scams. Beware of drivers who deliberately try to hit other cars to get some money from their insurance policies.

The last form of fraud we’ll cover isn’t perpetrated by the car owner at all, but the body shop that works on the car. They will quote a price much higher than what it would take to repair the car, assuming that no one will care enough to check into it.

With all of this going on, insurance companies have to protect their interests. They do so in several ways. First, policies have deductibles. The rationale is that if the driver knows they will have to pay some of the costs, they will be less inclined to make a claim. The second way they combat fraud is to raise rates after an accident. Again, if a person knows they’re going to have to pay more for their insurance after an accident, they may be less likely to try a scheme like the ones above. Finally, if all else fails, fraud is a crime, and they can prosecute.

It is amazing how many different schemes there are, and how many people are willing to try them. But, it does indeed happen, and it is the rest of us who have to pick up the tab. We shouldn’t have to pay for the criminal activities of others, but we do. The insurance quotes you receive are inflated, to some extent, by the misdeeds of others.

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Written by Susan Tanner –

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