Data from the Insurance Research Council has indicated that there is about $5 to $7 billion in inflated auto insurance claims made every year, though the overall cost that would occur if insurance companies in any sector did not make efforts to detect scams would be significantly higher. Every time fraudulent claims get past the insurers, the end result is that the cost will trickle down to the clients and lead to higher premiums. Therefore, insurance companies have put extensive efforts into place to help prevent scams from occurring in…
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Auto insurance fraud comes in different shapes and sizes
According to industry experts, it is not at all uncommon for people to make false claims about their vehicles – from claiming that their luxury cars are farm vehicles to under-stating their mileage – in order to try to keep their car insurance premiums down, which does trickle down and affect the honest consumer. The result of this fraudulent behavior is making it increasingly difficult for a good driver to find auto insurance at a cheaper rate. According to spokesperson, Pete Moraga, from the Insurance Information Network of California, insurers…
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