Recession is Making Auto Insurance More Expensive

 

As if it weren’t bad enough to try and pay for gas and food while trying to keep your job in this economy, now people have to deal with the fact that their auto insurance has been going up as well. For some the auto insurance increase has been one more problem for them that they have to meet, but for others it has truly been a case between driving without auto insurance or not driving at all.
 
The auto insurance companies say that the biggest reason that auto insurance policies have gone up is because of the amount of auto insurance fraud that is going on. They say that in this economy people are getting desperate and looking for ways to make money. They get in their heads that they can make money from defrauding their auto insurance company so they set up these fake accidents and then they split whatever money comes out of the settlement or court case. The auto insurance companies have increased the number of people that they have working these cases as they know that if they can recoup some of the money lost that they can stop raising auto insurance pricing.
 
They said that they are finding that arson has become very popular as auto insurance customers try and get out of auto loans that they can ill afford. Instead of simply turning the car back in, they fake that it was stolen or torched in order to get out of the auto loan and claim the auto insurance money.






 

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