August 25, 2005
Car Insurance Fraud Explained
According a survey conducted car Insurance fraud costs the insurance industry an estimated $30 billion each year and the average American household approximately $300 each year in extra insurance premiums. Even if you don’t give a hoot about the car insurance companies’ losses, you could buy an entire flock of chickens for that.
Approximately 90 percent of the costs of insurance fraud are the result of what is called “claims padding” – adding damage, injuries, and fictitious passengers to insurance claims. This leads one to believe most people think this is an okay thing to do. In fact, according to one Insurance Research Council survey, 35 percent of Americans think it’s all right. Think again. Every time an insurance company pays a fraudulent claim, it passes that loss to its customers by raising their rates and thereby reducing the flocks and subsequently the production of fried chicken across the nation. Think about it.
Cat: | Time: 9:22 am (UTC+8)