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Recently when reviewing car insurance Lloyd’s one of the leading insurer has claimed that there is an increase in fraudulent claims. This can be a leading cause of the auto insurance premiums rising. What is more alarming as per the article is that the recent survey shows that the fraudulent car insurance claims are rising all over the world.

Incidents of fraud aren’t by any means limited to the UK. It’s become an “international condition,” as insurance companies around the world “are reporting a higher number of bogus claims from cash-strapped motorists, homeowners and other con artists.
“In the US, the Insurance Information Institute estimates that fraud accounts for about ten percent of the property casualty insurance industry’s losses each year.

How would these frauds affect us when we review car insuance or compare auto insurance quotes.

“In Canada, organized insurance crime costs insurers and policyholders around $542 million annually, according to the Insurance Bureau of Canada.”
As examples of some common frauds, Lloyd’s recounts numerous instances of people who make claims for injuries related to cars, sidewalks, etc., which are actually the result of non insurable activity – such as fights and outright deceptions.
An outstanding example from the U.S. involves a middle-aged woman’s claim for injuries that had left her “totally disabled”, forcing her to leave her teaching position. However, she was subsequently arrested for accepting workers’ compensation benefits while working at a youth sports camp. Then there are the bogus motor [auto] insurance claims, including the man who pushed his car off a cliff in an effort to claim under his policy.
Lloyd’s notes that “according to the Insurance Research Council, around one in every five motor insurance claims in the New York City area contains elements of fraud while as many as one in three appear to be inflated.”

When you review car insurance you will realize that the car insurance premiums are higher. This is because the insurance companies are spending more on auto insurance claims and thus since car insurance rates are linked with claims the auto insurance rates are higher and increase. The insurance companies are also investing more and more in detection methods and technology to detect fraud and this is helping.

The new changes in the auto insuranceclaims brought in Canada Ontario will also help in preventing fraud claims of pretended injury cases.

We as consumers, need to prevent fraud and help the insurance companies since ultimately we pay the amounts in terms of higher auto insurance.

Compare auto insurance and review car insurance here. Help in the mission of prevention of fraud to get low auto insurance rates.
Thanks.
Kamlesh

Compare auto insurance

Compare auto insurance

Ebene Kagan : Does an auto insurance claim affect my auto insurance premium since when I did compare auto insurnace quotes my auto insurance quote was higher?
I live in New York city.

Compare auto insurance quotes or review car insurance if invloved in auto accident.

Response : Auto accidents are unfortunate events and this is the main reason why one goes for an auto insurance policy. It is a fact that in case you are involved in an auto accident and the accident falls within the perview of the insurance company they would settle your claim and reimburse you. In cases where someone is hurt or a fatal accident the financial loss can be much higher for the insurance company.

Insurance companies have their own underwriting guidelines which they follow, however the reality is that if you are involved in an auto accident the insurance premium would increase in the subsequent year on account of the claim. The quantum of increase in the auto insurance premium is not directly proportionate to the claim paid, however there is an increase in the premium.

Now as per the recent news in New York and Florida the number of staged claims are on the rise and those staging the claims involve incoent drivers in tha accidents.

Suspicious insurance claims from staged accidents are on the rise— and nowhere more than in New York and Florida, two states with no-fault statutes.

Overall, the number of questionable claims from staged accidents increased by 46.3 percent from 2007 to 2009, according to the National Insurance Crime Bureau (NICB)

Additionally, the ratio of staged accident claims to overall bodily injury (BI) and personal injury protection (PIP) claims has increased over this period while the total number of BI and PIP claims has declined.

You will be suprised to know that Florida and New York are ranked first and second, respectively, in the top 10 loss states and five of the top 10 loss cities.

The top five states that generated the most staged accident questionable claims are: (1) Florida, 3,006; (2) New York, 1,680; (3) California, 1,619; (4) Texas, 792; and (5) Illinois, 433.

The five cities that generated the most staged accident questionable claims are: (1) New York City, 1,304; (2) Tampa, 562; (3) Miami, 511; (4) Orlando, 422; and (5) Houston, 376.

Staged accidents target innocent drivers with schemes aimed at defrauding the insurance company. This would mean that you need to be more aware on the road when you are driving. Avoid tailgating at all cost and also note down all the details of the oppoiste driver and details of the claim in case you get involved in an auto insurance accident. Unfortunately, there is nothing which can be given to distingush between a genuine claim and a fraud and hence you need to be careful.

It would be best to compare auto insurance quotes online here or at any other web-site of your choice review car insurance coverage to get low auto insurance rates.

Thanks.
Kamlesh

Compare auto insurance

Compare auto insurance

Eben Pagan (New York): My auto insurance policy is going to be renewed by the end of this month and I live in New York. Can you please tell me about No fault car insurance in New York?

Response: Eben, I know you will find this odd, but the best way to get the best auto insurance rates is to compare auto insurance quote online and am sure you get the best deals. Online auto insurance is competitive and they offer you the latest discounts and best rates since they know that there are already a couple of  insurers offering their rates on the same page.

Let me shate another news with you which you might have read regarding No fault car insurance in New York.

New York’s auto insurers saw their typical no-fault payment for the medical care of accident victims rise by 56 percent to $8,748 per claim in the second quarter of 2009. This represents a dramatic increase from late 2004, when the average no-fault payment stood at $5,615 per claim, according to an Insurance Information Institute (I.I.I.) analysis.

The insurance industry, the New York State Insurance Department’s (NYSID) Frauds Bureau, the National Insurance Crime Bureau and law enforcement agencies continue to investigate suspicious claims vigorously, according to Dr. Robert Hartwig, the I.I.I. president and an economist. Yet loopholes in the no-fault system make it particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.

“In less than five years, New York’s auto insurers have seen an extraordinary 56 percent increase in the average cost of no-fault claims, to a great extent the result of abuse and, sometimes, outright fraud in the system,”

“The costs of fraud and abuse of the state’s no-fault system ultimately are borne by New York’s honest policyholders. New York’s no-fault claim costs are now the second highest in the country and are 111 percent higher than the U.S. average of $4,152.”

The reason for letting you know all these details is to explain why the auto insurance rates are likely to rise. This is because the insurance companies base their auto insurance rates on their expenses and no fault claims expenses are a part of the expenses which all the insurance companies have to share and pay for.

The insurance companies offer a higher discount online since they save their operating cost. When you compare car insurance quote online make sure that you are also comparing your coverages and the discounts offered. I am sure you will find a good quote here.

Thanks.

Kamlesh

Compare auto insurance

Compare auto insurance

Garriaon : How much are auto insurance rates dependent on auto theft?
Response : This is a very relevant question since the auto insurance rates are directly dependent on auto theft. Now car theft depends on the car you are using and the data and statastics regarding the car.
Just recently the “hot wheels report” by National Insurance Crime Bureau’s (NICB) for 2008 revealed the following facts :

The 1994 Honda Accord ranked as the most stolen vehicle in the United States in 2008.
Following the 1994 Accord on the list of most stolen vehicles were:
• 1995 Honda Civic
• 1989 Toyota Camry
• 1997 Ford F-150 Pickup
• 2004 Dodge Ram Pickup
• 2000 Dodge Caravan
• 1996 Jeep Cherokee/Grand Cherokee
• 1994 Acura Integra
• 1999 Ford Taurus
• 2002 Ford Explorer
At the same time, the NICB said that the preliminary 2008 FBI Uniform Crime Report shows vehicle theft is on pace to decrease by 13.1 percent compared to 2007.
If the projection holds, 2008 would be the fifth consecutive year of declining vehicle thefts. NICB said if that trend continues, total thefts for 2008 would be below 1 million vehicles—a 20-year low.
The NICB said certain models of older cars and trucks are popular with thieves because of the value of their parts.
“Frequently, the parts can be stripped from a car at a chop shop and sold for at least twice as much as the value of the vehicle on the used car market,” the NICB said.
The organization added that newer models are also more difficult to steal because of anti-theft technology incorporated by the manufacturers.

Thus if you are looking for auto insurance for any of the listed vehicle which also requires a comprehensive and theft coverage, you will naturally pay higher.
However, the good news is that the thefts are decreasing, and secondly you can alwyas compare auto insurance quote online for free and review your car insurance coverage. You will certainly find the best auto insurance rate for your vehicle.

Compare auto insurance

Compare auto insurance

Mike Hill : Colorado : I am interested in taking a Comprehensive auto insurance quote? I have been charged a very high premium for my 1995 Honda Civic and am upset. I would appreciate your in-put on this.

Low auto insurance rate- Your car is a main factor.
Response : Mike, I can understand the reason why you are upset. it is always upsetting when your premium increases. For the insurance companies the statistical data is a factor of consideration for premium. The National Insurance Crime Bureau has complied a data of 10 most frequently reported lost/stolen vehicles which are :.
• 1995 Honda Civic
• 1991 Honda Accord
• 1989 Toyota Camry
• 1997 Ford F150 Series
• 1994 Chevrolet C/K 1500 Pickup
• 1994 Acura Integra
• 2004 Dodge Ram Pickup
• 1994 Nissan Sentra
• 1988 Toyota Pickup
• 2007 Toyota Corolla
Source: National Insurance Crime Bureau. Hot Wheels: Do You Know Where Your Car Is? (July 9, 2008)

This would mean that the theft ratio of these vehicles is higher and thus if one wants to include theft which is part of the comprehensive coverage the rate would be higher. The insurance company would base their rate on the statistics and also the companies own loss statistics.

Here is another tip, if you do not have a car which falls in the above list do not worry about it. Of course, you can make your car safer with all extra safety features if you want. Secondly you can shop and compare your auto insurance coverage on-line to find out the best rates.

Thanks.

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