Auto Insurance Fraud Rises

It would seem that as the economy gets worse, more people are willing to break the law to make a buck. The instances of auto insurance fraud have greatly increased since the problems with our economy have gotten worse, costing other drivers more than $6 billion a year in excess auto insurance payments.

Not only has the number of people practicing it increased but the number of people who say that auto insurance fraud is acceptable has increased also. More people are saying that they would not necessarily turn someone in for it has increased and they say that if a family member was doing it they most likely would not say anything. Some locations are really feeling the brunt of auto insurance fraud – much more than others. In Hawaii the number of people convicted for auto insurance fraud is up 61%.

In New York they have seen a 33% increase in those that are abandoning their cars and then reporting them stolen because they either need a new car and cannot afford it, or they cannot afford the payments on the existing car. In Pennsylvania they are reporting a 30% increase in auto insurance fraud and related crimes – many of which stem from staged accidents. In Idaho one man paid another man to torch his car because he could not afford it any longer.

More people are reporting that they understand why someone would resort to auto insurance fraud, as they say that desperate times call for desperate measures. More say that they might find themselves in a similar position and take the same steps than ever before. Whereas you could count on people reporting auto insurance fraud before, now you really can’t which is seriously concerning the car insurance companies.






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