While you might never dream of committing insurance fraud, it still helps to be aware of the different kinds of auto insurance fraud there are so that you can know whether or not you’re being taken advantage of when it comes to your insurance in MD. Something else to think about with insurance fraud is that you have to suffer for it by paying higher premiums. If you suspect that someone is committing insurance fraud, report it to the proper authorities.
There are actually two ways that stolen car insurance fraud can be done. The first is when a person sells their automobile to an illegal body shop or “chop shop” so that it can be sold for parts before being reported as stolen. The second way that stolen car insurance fraud can be carried out is when a person sells the car to an international buyer before reporting it as stolen. Since there’s no paperwork, there’s no proof of what happened to the car.
Your rates for insurance in MD can increase if the driver and accident victim work together on a car accident. Sometimes the insurance investigators and witnesses are in on the scam is well. The way fraud is committed is that the value of the vehicles is inflated and the insurance company winds up paying for both totaled vehicles.
There are even more schemes when it comes to home insurance, medical insurance and life insurance. Whenever you see in increase in your insurance premiums, it could be due to insurance fraud.