Defending Against Car Insurance Fraud

What is Car Insurance Fraud?

Car Insurance FraudCar insurance fraud is described as the act of deliberately misleading an insurance company in order to acquire money to which there is no legitimate claim. Fraud additionally contains overstating a claim to acquire an increased settlement. There are numerous methods that individuals set about perpetrating insurance fraud. Staged accidents or car theft, making consciously false insurance claims, and feigning an injury are only some examples of insurance fraud.

There are two categories of insurance fraud: hard fraud and soft fraud. Hard fraud happens when an individual intentionally presents an accident like a collision, theft, or fire, understanding that his or her insurance compensates such a loss. Soft fraud transpires when individuals embellish the loss or injury that really occurred after the accident.

What a Person Should Do About It

When the economy takes a downturn, consumers must be vigilant against all kinds of fraud, including insurance fraud. Insurance fraud can originate from both directions, either prompted by false or counterfeit insurance companies or committed against a person by other drivers seeking to resolve a claim against his or her official insurance carrier.

An individual must drive carefully. Other drivers might try to coerce him or her into situations where he or she becomes the one at fault in an accident. This kind of fraud might contain property damage claims or fraudulent claims for injuries. The idea of this kind of fraud is to use one vehicle to coerce a person into having an accident like one car forcing into the individual’s lane, so that he or she crashes with a second one.

The first vehicle then departs the accident scene, and the individual is liable for striking another car. The best defense against this kind of insurance fraud is to at all times be conscious of the other vehicles on the road, and on the watch for strange or unpredictable driving patterns.

Insurance company fraud happens when the person buys a policy from a company that is legally competent in funding the policy. This kind of fraud is basically normal in most elder communities and might concern auto, home, life, or health insurance. The insurance agent who sold the policy might not speak for an actual insurance company, or he or she might be involved in a company that is no longer authorized to sell coverage or is economically competent to compensate a settlement.

An individual’s best defense against this kind of insurance fraud is to at all times consult his or her state department of insurance prior to signing a policy. A person must remember that insurance policies are legal contracts. It is his or her duty to understand what he or she is becoming involved in prior to authorizing the contract.

If the individual thinks that there is a difficulty with his or her present insurance company, he or she must use online insurance quotes to locate a more reliable carrier. The person can customize the policy to suit his or her needs and compare the costs between at least one insurance provider. The individual must consult his or her department of insurance to guarantee that the company is authorized for his or her state. He or she must also ensure that the insurer is economically competent to compensate a settlement if he or she must file a claim.

Jeecole is a blogger for Carroll Troberman Criminal Defense, a criminal defense law firm in Austin, Texas. She wants to know how to defend against insurance fraud.