New Post

Is Car Insurance a Rip Off?

If you’re a first-time car buyer, you’re a prime target for car insurance scams. Insurance agents who are corrupt and unethical may add extra coverage to policies just to increase their commission. You should always be skeptical when deciding which car insurance company to purchase your policy from, and it’s even more important if you’re a disabled person. Even if your car insurance policy is legitimate, you may not meet state minimums and you could be sued for negligence.

Another common type of insurance fraud involves leaving crucial information off the application. This could be anything from leaving certain drivers off the policy to claiming to live in a cheaper neighborhood. Others may be linked to body shops or other businesses trying to profit from your claim. In the case of replacement fraud, a repair shop claims to have used brand-new parts while using cheaply made substitutes. The insurance company ends up paying for the parts, and the shop pockets the money.

Fraudulent claims can be categorized into two types: hard fraud and soft fraud. Hard fraud occurs when an individual intentionally or knowingly fabricates a claim, while soft fraud involves omitting important information. There are penalties for both. Some are incredibly expensive to the insurance provider, while others are easy to commit. However, if you’re trying to make money off of your insurance, you’ll want to be as accurate as possible when you submit your application.

Related Articles

Leave a Reply

Back to top button