What is Auto Insurance Fraud and How Can You Prevent It?
September 2, 2008
Auto insurance fraud has now become a major concern for the insurance companies. This type of fraud is a serious crime and the offender, once caught, may have to spend years in jail. Auto Insurance fraud involves deceiving the insurance companies to cough up money as damages against an accident or car jacking when in fact the fraudulent party staged the accident. [more]However, auto insurance fraud not only costs billions of dollars/year to the auto insurance companies alone. The insurance companies charge high premium rates to the customers to mitigate the loss.
Auto insurance fraud is classified into two categories Hard and Soft Fraud. A hard fraud is the law enforcement term of illegally obtaining money from the insurance company by faking car accident, injury or theft; whereas a soft fraud is the deliberate suppression of minor information to gain money.
