Car accidents in Iowa are costly in any form, especially physical damage, medical bills, and time to complete these tasks. To defend against car insurance fraud, learn how to identify the different types of car insurance fraud, including injury fraud, damage claims, registration and false reporting. These crimes cost not only the policyholder, but financial crimes like these affect the insurance cost in the area as well.
Car insurance fraud can be as simple as misrepresenting the extent of an injury or prolonging recovery. These fraudulent claims lead to more costs in medical payments to the injured party for unnecessary treatment or pay for time off for healing that was not needed. This type of financial crime causes the insurance to increase to pay for the medical bill coverage, an increase which the policyholder has to absorb.
Along the same lines of injury fraud is the misrepresentation of damages. An increase in the reported damages, including any damage present before the accident, to receive enough funds to pay the deductible and repair or replace the damaged car is a financial crime.
Counterfeits and documentation
Documentation fraud, defective or low-grade car parts, and false registrations are examples of car insurance fraud. Registering a vehicle in a lower premium area, understating mileage, or misuse of commercial vehicles to gain a lower premium with lower deductions are a few of the documentation errors that cause insurance fraud. Installing defective parts, like counterfeit airbags, to sell or resell a vehicle or pass an inspection are examples of counterfeit fraud. Defending against fraud created by defective parts requires purchasing the vehicle from a reputable dealership or completing a pre-purchase inspection.
Committing car insurance fraud raises the rates of other drivers and may cost you jail time, money, and your policy. Defend against car insurance fraud by understanding your rights, creating detailed records of incidents, including reported injuries and do not sign documents at the accident scene.