Car Insurance Fraud - How Does It Affect You?

Every year, car insurance companies pay outIf a person is held liable for ALL the costs of a
millions of dollars in fraudulent claims. The claimslawsuit if they lose, there would be much less
can range anywhere from staged pedestriantendency to bring the lawsuit in the first place.
accidents to inflated injury claims stemming fromGiven that, insurance companies would be much
a real accident. While the vast majority of us doless willing to settle if they knew they had a
not engage in such dishonest behavior, we are stillchance of winning in court at less cost.
affected by them. How?Second, pressure your insurance company to
Every fraudulent claim raises the cost of doingfight out any claim against you that you feel does
business for the car insurance companies, andnot have merit. Threaten to change companies if
therefore raises the price of car insurancethey will not cooperate. Insurance companies, like
premiums. For every claim made that has noany other business, will respond to customer
basis in reality, it is costing you money! Doesn'tpressure if they feel their profits are being
that upset you? It should!threatened.
Now, admittedly the insurance companiesFinally, make sure that everyone you know is
themselves are partially to blame for this.informed of the issue and takes the same actions.
Shysters who game the system know that mostOne person is not likely to make that much of a
insurance companies will settle a claim quicklydifference in reducing fraudulent claims and the
rather than pay the high costs of litigation in court.resultant higher costs of insurance, but many
It's really a numbers game for them. Why paypeople taking the same actions will make a
the high costs of court fees and lawyers whentremendous difference. Remember this article as
they can easily settle for a fraction of the cost?you fill out the check for this month's installment
How, then, can we fix this very broken situation.on your car insurance premiums. You can make a
First, put some pressure on your elected officialsdifference!
to change the way litigation is done in this country.