You could save hundreds in minutes on your Insurance

Auto Insurance Fraud: Lose / Lose / Loser

Most cases of auto insurance fraud are a result of desperation. In 2009, as the recession was ramping up to its worst levels (unemployment climbing toward 10%, auto industry going bankrupt), the National Insurance Crime Bureau tracked the rate of fraud at 14%. Roughly 85,209 questionable claims were filed last year over the 74,902 in 2008.

And then you meet an over-achiever like Wallace Morris of Philadelphia. His transports business went under because he couldn’t afford to pay his insurance bills. Even the judge in the case pointed out how ironic it was that he then turned to full-time insurance fraud aided by friends, relatives, and “associates” — 90 of them to date who have fessed up and are cooperating.

So, what are the numbers in this one case?

– 44 car accidents
– 115 arrests
– 17 insurance companies bilked
– upwards to $1 million in losses

It doesn’t matter if the rest of us go out and buy one of the 10 safest cars in America, run down the list of all the ways you can trim your insurance bills, and comparison shop like demons. Auto insurance fraud and people who drive without insurance are the two major causes of premium hikes for consumers across the boards.

Mr. Wallace if serving four to ten and gets to pay restitution in the amount of $440,000 — and the rest of us get to pay the balance in higher premiums so the insurance companies can cover their losses. Lose / lose/ loser.

Leave a Reply