What You Need To Know About Car Insurance Fraud

car insurance fraud and how to avoid it

While you may typically think of car insurance as a way to protect you in case of an accident, others may look at car insurance as a way to make money off of others. Car insurance fraud occurs when someone purposely tries to gain money or benefits that they know they are not eligible to receive.  Even if you do not participate in car insurance fraud, you can still be a victim of someone who does. By understanding these facts about car insurance fraud, you will be able to protect…

Read More

Illinois Startup Aims To Make Dashcams Popular In The USA

dashcams

Willowbrook, IL – Illinois-based online startup Eyewitness Dashcams aims to bring dashboard cameras to the United States on a large scale. They aim to educate the public about dashboard cameras and show them as an important part of car security. Dashboard cameras are small recording devices that don’t mount on the dash as the name suggests, but on the windshield or behind the rear-view mirror, capturing everything that someone sees while driving. These cameras are very popular in countries like Russia and South Korea, where insurance fraud is quite rampant…

Read More

Auto insurance fraud impacted by catalyst of staged collisions

fraudulent insurance claims jail scam

Organized scam rings are already costing the industry millions and are placing innocent people in harm’s way. According to investigators, auto insurance fraud is becoming more frequent as well as more sophisticated, as they are now involving organized groups as opposed to individuals or a small handful of people. Today’s insurance scams involve faked crashes with involvement of medical clinics and other professionals. This allows the collisions to occur, the claims to be made, and phony treatments to be administered in order to generate lucrative payouts for those involved. The…

Read More

The insurance company’s strategy for finding fraud

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…

Read More

Florida legislators come face to face with staged accidents

Florida continues to lead the U.S. in auto insurance fraud, a fact that state lawmakers have been working to change. Staged auto accidents are presenting the state, and its insurance industry, with significant problems. Those abusing the state’s Personal Injury Protection (PIP) system, which provides drivers with no-fault auto insurance policies, cause insurers to raise rates on coverage in an effort to recovery from losses. Thus far, Florida legislators have been divided on how to solve the problem. That is until they were shown how easy it was for drivers…

Read More

Florida prepares for the battle against PIP fraud

Residents in Florida have joined with business associations and law enforcement agencies to create the Gear Up Florida Coalition, with the goal of protecting insurance consumers in the state from the skyrocketing costs that are resulting from the increasing instance of fraud to its no-fault law. According to Tammy Perdue, the Florida General Counsel for Associated Industries, they want to bring fraud from car accidents to an end and change the organized systems that are encouraging these criminal behaviors. She explained that it will be critical for legislative action to…

Read More

Personal injury fraud is costing us all!

Lawmakers will be focusing on ways to control auto insurance prices; mainly, by reducing the amount of scams and civil lawsuits associated with bogus personal injury claims. Staged accidents are costing law enforcement, insurance companies and private tax payers millions of dollars a year. In most states, insurance fraud is a (2nd degree) felony, with a minimum, mandatory two year prison term if convicted. In some states, like Florida, organized crime rings committing auto related accidents have gotten so out of control, the insurance industry has developed special investigation units.…

Read More