Auto Insurance Fraud Comes in Many Forms so consumers have to find low cost auto insurance
Industry experts said that some motorists would try anything to lower their car insurance premiums from lowballing. According to an article released On Wednesday, Online Auto Insurance News reported that these false claims could mean hefty losses for insurers therefore this thing became a challenge for honest consumers to find low cost auto insurance.
Pete Moraga as a spokesman for the Insurance Information Network of California told that it was a cat and mouse game” between policyholders stretching the truth with providers”. ” In urban areas across the U.S., thousands of motorists was claimed luxury and last year, sports cars was used as farming vehicles to take advantage of discounts from insurers worth as much as 20 percent”, according to that statement echoes a recent report from a San Francisco company.
“About 6,400 of 80,000 vehicles which surveyed were in garages in agriculture cities were still received the farming-vehicle discount”, Quality Planning, which verifies policyholder data for insurers had reported. National Insurance Crime Bureau (NICB) said that coverage fraud had added up to about $30 billion a year nationwide. Then, the Los Angeles County District Attorney’s office predicted that more than a quarter of that sum was attributable to auto policy fraud.
The experts said that, it was difficult to identify those committing it and to quantify more specific varieties of fraud, which was partly because fraud takes so many forms. This thing made consumers took advantage of lower premiums because they had lied about how badly their car was damaged in an accident or register their car out of state.