Car insurance fraud affects more than the victim and the car insurance company; it impacts everyone. Car insurance fraud can be as simple as lying about your address for lower rates, or as severe as dumping your car. Whatever the offense, car insurance fraud costs consumers billions of dollars. Toyota dealer in Doylestown area is discussing car insurance fraud.
1. Bodily injury claims
Bodily injury fraud occurs when claimants file false claims for nonexistent injuries, or they dramatize the legitimacy of their injuries. Common bogus claims are whiplash injuries and back pain. These injury claims result in $4 billion to $6 billion extra to be paid out in accidents. When payouts increase, the insurance company attempts to recover the loss by charging all of their policyholders more.
2. Application fraud
This occurs when applicants lie about the type of car they have, existing damage, the address where the car is garaged, or the number of miles driven per year.
3. Staged accidents
Staged accidents occur when thieves create a situation that results in a car accident. The thief files a claim against the policyholder and squeezes money out of the car insurance company for fraudulent physical damage and bodily injury claims.
4. Inflated vehicle repairs
If a Pennsylvania body shop increases an estimate for unnecessary repairs, it is fraud. Also, some windshield companies file fraudulent claims for unnecessary windshield repairs or window replacements.
5. Dumping
Dumping occurs when a policyholder willingly engages in getting rid of a car, and then they report it stolen to the insurance company, hoping it will be declared a total loss.
Conshohocken Area Toyota Dealership
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