How does auto insurance fraud impact us? Recently, the arrest of four individuals accused of conspiracy to commit fraud by staging a car accident on a street in Hialeah, South Florida, made headlines.
Auto insurance fraud is one reason behind the surge in auto insurance premium rates. Statistics indicate that Florida is among the states most affected by this crime. But what exactly is auto insurance fraud?
In the case of these individuals arrested for staging a car accident, the deceit involved attempting to claim insurance compensation, which could be a minimum of $10,000. They crafted a scheme involving some unscrupulous private clinics.
Another typical case of fraud is when a vehicle owner conspires with someone to “steal” the car and sell it, enabling them to claim compensation from the insurance company and also profit from the sale of the “stolen” vehicle.
Insurance fraud is a severe offense that could result in a sentence of up to 15 years of imprisonment and a fine of $10,000.
There are also less severe instances of fraud, such as when an owner, seeking better benefits while obtaining insurance, declares to the company that their car has fewer miles than the odometer shows or when they conceal the number of family members who have access to the vehicle.
At times, the vehicle owner becomes a victim of fraud. This commonly happens when they take their car for repairs, and the workshop inflates the bill, swaps new parts for old ones, inflates the number of labor hours dedicated to the repair, or neglects to replace deployed airbags after an accident.
According to the FBI, auto insurance fraud costs the industry about $40 billion annually, resulting in overloaded insurance premiums of nearly $700 per year.
The most effective way to break this harmful cycle for everyone is to refuse to participate and do things correctly.
If you’re seeking affordable insurance, avoid fraud. Reach out to Univista Insurance for the best discounts and extensive coverage. How does auto insurance fraud impact us?
Give us a call today for a complete evaluation! (305) 985-4126. You can also get a free quote here.
