Car Insurance 2020 Info: What Are Car Insurance Frauds And How Are They Punished

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Compare-autoinsurance.org (https://compare-autoinsurance.org/) is a top auto insurance brokerage website, providing car insurance quotes online from trustworthy agencies all over the United States. This website presents the main types of car insurance frauds and their associated penalties.

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“Lying to your insurer and trying to scam the company will backfire with unpleasant consequences”, said Russell Rabichev, Marketing Director of Internet Marketing Company.

Each year, billions of dollars are lost due to car insurance frauds. To compensate for their losses, insurers raise the cost. People caught committing frauds or attempting to commit frauds are severely punished. The exact penalty depends on the type of fraud and its severity. The main types of frauds are:

  • Soft fraud. Also called opportunistic fraud, is a minor offense, in which a person takes advantage of certain situations, and straight-out lie their insurer to gain money or benefits. For example, a person that applies for an insurance policy lies to the insurer to get a better deal. Usually, those persons lie about how much miles they drive each day, where they park and keep their car, who is the primary driver, how the vehicle is used, marital status and college degrees. In other cases, persons that were legitimately injured in accidents will exaggerate their injuries to get more money or additional medical services.
  • Hard fraud. Hard fraud is a serious offense that involves actual damage taking place. Deliberately causing an accident, setting up your car on fire, claiming your car was stolen while you hide it, cause millions of dollars to be lost by insurance companies every year. These losses will be reflected in the higher premiums paid by the customers.

Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

For more information, free quotes and money-saving tips, please visit https://compare-autoinsurance.org/

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Gurgu Ciprian
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