More Suspicious Claims – Higher The Premium

Insurance Fraud Can Put You Behind BarsIf you are found to have a suspicious claim, then watch out for a burning hole your pocket as you will have to pay high car insurance premiums. The rates are growing drastically. Many car insurance companies are being notified upon the fraud occurring in the state. People blame it on financial crisis. They believe this is an easy way to beat the crisis. Be it Ohioan or any citizen of U.S, being deprived of such necessities and feels bounded by the economy. The recession has its mark on fraud. The claims made were suspicious and had raised to 25% in the just last two years nationwide and had an increase from 74,147 to 91,798 between 2008 to 2010 as per National Insurance Crime Bureau’s latest reports.

Highlights on Fraud

There are few major scenarios lined up as fraud. Inflated towing, storage bills and fraud on auto glass which are found to be occurring regularly at higher rates. An investigation set up in order to bring such crime to highlight proved that many car insurance companies have faced false claims. In many instances even the policy holder will not be aware of the fraud.

A special investigation manager reported an incident where there was a scam on auto glass. Vendors were involved in the scam where they had a shop nearby gas stations and would approach motorists to offer a help in fixing their windshields damaged. Though the windshields were not found damaged, the vendor just filled up the crack or faked to fix the chip and a bill was sent to owner’s insurance company. The percentage of such claims is soaring high and has reached its heights. The car insurance industry has also been facing problems with the inflated towing and storage bills from towing companies for quite some time now. The count is growing and suspicious claims are being made. This intact is causing a burden by increasing premium rates. Make sure you are aware of such incidents and clearly assess your insurance claims.