When you pay your monthly car insurance premium, you may wonder why its so high, and whether you are being scammed. In fact, however, the culprits are usually the people with the insurance, and not the companies providing it. Want to know why? Here are some of the most common auto insurance ripoffs:
Sometimes people will use their insurance to get a new car when their old one is just about to give out. If the driver gets into an accident just as the engine hits 150,000 miles, for example, you have to wonder.
Other dishonest drivers stage a low speed accident, and then claim thousands in medical bills, sometimes going so far as to claim permanent disability.
Taking this a step further, the scammer may even bring a few friends along for the accident, and then claim that these passengers also suffered injuries. The friends settle for a goodly sum, and then give the primary culprit a percentage of their take.
What may seem like a relatively minor scam, but can actually run into serious money is the person who, wanting to make sure that parts are replaced and not just repaired, will intentionally cause additional damage after the accident.
Finally, it may not be the owner of the car but the repair shop who devises the scam. Some shops will drastically inflate the costs of repairs, reasoning that the money isn’t really coming out of anyone’s pocket.
Insurance companies that provide auto coverage have a few defenses against scams. One is the use of deductables. Since the insurance holder has to pay out of pocket the full amount of the deductable before the company has to pay anything, this theoretically reduces the incentive to use insurance. Second, making a claim against your insurance can result in a significant increase in premiums, and this increase can be applied for years. Again, this discourages frivolous and fraudulent use. Finally, fraud is a criminal offense, and offenders can be prosecuted. Those convicted may face jail time.
In the end, though, the people who are hurt most by fraud are the innocent people who do nothing wrong. They are the ones who have to make up for fraud losses in the form of higher premiums. Because every auto insurance quote has some amount factored in for fraud.
By: Aiden Matthew Wilson
Posts Tagged ‘Insurance Premium’
Auto Insurance Ripoffs
January 23rd, 2010Auto Insurance – Tips For Women Needing Low Rate Coverage
January 22nd, 2010
Male drivers usually think that their female counterparts are no match to them when it comes to driving. This may be true, but auto insurance companies do not seem to agree with this view as research has shown that female car insurance policy holders pay less insurance premium than their male policy holders.
Reasons why females have lower auto insurance premium is of course not unconnected with the fact that female drivers have a lower risk of having an accident maybe due to the fact that they are more careful when driving. If you have understood how insurance work, you would know that this singular reason is enough for women to get much lower rates on their car insurance coverage than men.
If you are a female driver reading this and you want to save on your auto insurance policy, then you should read on because the following paragraphs will help you find out how to save more on your auto insurance policy as a woman..
The best way to find cheap auto insurance rates is to get quick vehicle insurance quotes online. Google and other search engines provide you a fantastic opportunity to do just that. All you need to do is just type a phrase like quick auto insurance quotes and results will be provided. You would find many sites on which you can do quotes comparison. Be sure to choose very reputable comparison sites.
Prospective customers can use this free tool on comparison websites and they can get multiple insurance quotes within a matter of minute with a single action. To get this multiple vehicle insurance quotes, all you need do is fill out the questionnaire provided on the site and in minutes your results will be ready.
If all these facts provided are true that women do indeed enjoy a much lower rate on car insurance than men, then women have no excuse not to take advantage of this and even explore more ways to further reduce the even low premium they pay on car insurance.
By: Chimerenka Odimba
Auto Insurance For Teens
January 20th, 2010
Teen auto insurance is a high risk factor for all insurers. The crash rate for teenagers is so high that it is usually preferred by parents not to let them drive untill they are older.
Usually, the most prevailing factor behind teenage drivers is peer pressure. Hence in order to keep your teenager safe at the same time as paying lower auto insurance premium for your teenager, you need to follow certain tips.
First of all, you need to realize that teens aver privileges that come with maturity at the same time as staying away from the attendant responsibilities. It is necessary to let your teenager know that with every privilege there is some responsibility or the other!!
Secondly, you should make them pay their auto insurance premium themselves or at least put in a considerable amount. This is a step that helps assert the fact that they would be far more protective and feel a bit more responsible.
Tips To Help You Ensure Your Teenager’s Safety
These tips generally work if you already have a close relationship with your teen.
1. Make sure your teenager does not drive around with peers unless you or some other responsible adult is present in the car with them.
2. Ascertain that your teen does not drive at night. It has been suggested that people driving at night are at a major risk of having accidents.
3. Let them know that they can not drive while being drunk and that they cannot drive if they have taken even a sip of an alcoholic beverage.
4. It is necessary for them to know that racing on the highway is not a good idea. A speeding ticket should lead to being grounded.
5. For taking the car out, they must tell you where they are going. If you are not comfortable, they need to take a cab.
It is necessary for you to get hold of and compare quotes from insurance quotes sites. All you need is just fifteen minutes to get quotes from a select few quotes sites.
Furthermore, make sure you give your accurate details as you fill the questionnaires presented.
After receiving your quotes, compare them in order to find out which serves your interest best both in price and value.
By: Gilchrist Adam