Auto Insurance Scams Warning Signs

Auto insurance scams are something that people should be aware of
because these unscrupulous individuals can fleece a company for the most
that they can give. The hard times can push people to do bad things.
Fraud is being committed by people who are sometimes not likely to do so
but are driven by their need. Once these people see how easy it is,
they tend to top off the last one with another and then another. It is
easy to see the signs of a person intent on creating a fraud when one
knows what to look for.

Hard vs Soft

In the industry, insurers classify fraud as either hard or soft. Hard is
when the person who has taken out the auto insurance makes a point to
actually get into an accident. Getting into an accident means
exaggerating any injuries that may have occurred to him or her as well
as making a big deal concerning the damage to the vehicle. Auto
insurance companies are sometimes quite lax when it comes to losses
incurred by automobile accidents. Some people deliberately lose their
vehicles, damage them or even collide with other objects to incur
damage. When there is damage and injury, they cash in on the policy that
they have taken out. Deliberate attempts to garner finances through
vehicular accidents, damages and incidents are considered as hard. Some
vehicle owners may actually collaborate with each other to obtain higher
payment issuances from the firms that issue the policies. Usually,
these involve old cars that have been chosen for their unworthiness.
Drivers and passengers are usually intent on pointing out their injuries
and that of the damage to the vehicle after the accident. They may
decline being brought to a hospital but later one will claim to have
gone anyways and present the other driver with bills of that hospital.

Soft auto insurance scams are instances when the vehicle owner actually
gets into an accident but exaggerates the damages to the vehicle as well
as to his or her person to get more from the company that handles his
policy. Claiming injuries which are not related to the accident as well
as misreporting wages claims are also included in this form of scheme.
It is in fact, a person who has had an actual accident who is milking it
for more than it is supposed to be. There are many of these types of
claims and many companies who pay for these may have a difficult time
assessing which is which because most of the people who file the claims
have lawyers and other expert who support them. Some people may hire a
lawyer to represent them even when the other party is willing to undergo
talks and remediation for the accident.

Another form of auto insurance fraud may be when the vehicle owner
registers the automobile somewhere else other than the place where he or
she actually lives. This is done to evade higher payments of the
policy. This can also happen in the case where parents put their names
in as car owners instead of that of their child. This is because some
states require higher amounts for the policy payments for younger
drivers or first time drivers. This evasion is still considered as soft
fraud.