Lloyd’s, the leader in auto insurance market, published a report that shows an increase in fraudulent insurance claims. This is not just a local practice, the number of fraudulent car insurance claims are increasing everywhere on Earth. Fraud claims represent over 10% loss in the auto insurance industry each year according to the Insurance Information Institute of the United States.
This will cause an increase of auto insurance costs as well.
If you are wondering how can fraud claims affect us when it comes to our auto insurance quotes, the answer is simple. Money to pay these kind of claims must come from somewhere. Examples of fraud claims are claims for injuries due to accidents or intentionally destroying a car to receive a claim.
A famous fraud claim made like this comes from a man who bulldozed his car off a cliff in order receive an insurance claim.
“The Insurance Research Council discovered that 1 in every 5 auto insurance claims in the New York City region involves a percentage of scams while 1 in 3 seems to be exaggerated.”, Lloyd’s report says!
Since car insurance rates are directly connected to auto insurance claims, the quotes you receive will automatically increase.
The insurance companies are trying to develop new technologies to detect fraud better. If there will be an efficient way of detecting fraud claims, the quotes will normally be lower. Consumers can help this cause by reporting any suspicion they have about someone doing a fraud claim. This will help everyone obtain lowe auto insurance rates/
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