Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How Staged Accidents Can Cause Your Insurance to Skyrocket

By Sukhdeep Subscribe to RSS | March 15th 2012 | Views:

Every year, it has been estimated that about 10 million car accidents are reported to insurance companies all over the country. What is alarming and saddening is that while a significant number of these are actual accidents, a significant number are fake.

What do we mean by fake? We mean accidents that may never have happened at all, or were merely staged. What would a policy holder get from a staged accident? you may ask. Well, easy money for one thing. Individuals who are desperate for some quick cash may try to get it with a few dents or scratches to their vehicles. In fact, staged accidents are one of the biggest problems that car insurance companies currently face. Fraud from across the board may cost insurance companies up to $30 billion in expenses in one year alone!

There may be those who believe that with this $30 billion loss, only the insurance company is affected. Other policyholders and “ordinary people” are not affected at all. In fact, some may even go so far to say that since these companies are raking in so much money already, then they can easily shoulder this expense, and still have plenty left over for their yearly profits.

We’re here to tell you this is an extremely wrong way of thinking. Staged accidents and insurance fraud ultimately affects all of us. How? Well, insurance companies need to find ways to raise money to cover the costs of insurance fraud. So, what do they do? The most logical thing for them to do is to raise the cost of premiums all across the board. Yes, no one is exempted. The loss in money is partly shouldered and passed down to auto policy holders.

In fact, when staged accidents and insurance fraud are proven, the effects could be very bad, not to mention very expensive for everyone else. To give you an example, a series of fake accidents were uncovered in New York City from the years 2007 to 2009. As a result, insurance premiums in the Big Apple rose up to four times as much, compared to the previous years! Altogether, the amount that everyone had to pay was around $229 million, or an average of $628,000 per day!

When someone decides it’s a great idea to stage an automobile accident in order to get easy money, what they do not consider is how it affects everyone else. These people may not personally pay now, but they will in the coming years, through ridiculously expensive premiums, especially for them, since they will be put under a new risk category. The sadder reality is that because of one or a few persons’ thoughtless actions, everybody has to share the burden of paying for higher car insurance coverage. At the end of the day, just don’t do it! It really isn’t worth it! Some petty cash that you will get today will still result in many years of paying for it!

Sam Briones is a freelance writer who covers topics ranging from finding the best car insurance to driving safety tips.

Sukhdeep - About Author:
Sukhdeep Singh

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Insurance Articles Subscribe to RSS

What leads to cheap van insurance?
Published by Carleson on December 8th 2011 | Insurance
Insurers offer separate quotes for vans used for personal purposes and for commercial vans. Due to t...
Steps to make good car insurance comparison
Published by Geenadavis on April 20th 2012 | Insurance
You have always heard how much important car insurance comparison is, but you are not familiar with ...
Why to get mobile phone and iPad insurance
Published by Ashish Pandey on February 7th 2012 | Finance
Getting mobile phone insurance or iPad insurance can be a great tool to avoid unnecessary expense an...
Understanding Backpacker insurance Policy
Published by Herry Smith on February 13th 2012 | Insurance
Backpacker travel insurance provides you the security level so that you can enjoy your holidays with...
Why you should acquaint yourself with auto insurance claim procedures
Published by Jerry on March 14th 2012 | Insurance
If you are straight out of driving school and own your first car, you may not know how to deal with ...
Cheap car insurance for young male drivers
Published by Ahmadgill on December 22nd 2011 | Insurance
You will be worried to know that a man pay a heavy to get insurance of a best company then the women...
Get compensation by business interruption insurance for disastrous circumstances
Published by Andrew Edwards on January 2nd 2012 | Insurance
If you are running a business successfully and happy earnings gained on regular basis...
Cost-effective commercial general liability insurance policy
Published by Andrew Edwards on April 11th 2012 | Insurance
A commercial insurance plan is the one which holds your company firm even in unfavorable conditions...
Factors to consider when taking an auto insurance policy
Published by Julia Bennet on February 6th 2012 | Insurance
Before buying a motor insurance policy, it is prudent to research about the various devis assurance ...
Best insurance lives in South Dakota
Published by Ronnie Brain on January 16th 2012 | Insurance
It is unlawful to drive on the South Dakota roads without auto insurance. If at all you are found vi...
Vauxhall Car Insurance is best way to get insurance
Published by Ahmadgill on January 17th 2012 | Insurance
Vauxhall Car Insurance Quote can give you help if you want to get insurance for your vehicle. It is ...
Seeking car insurance for the first time- We can help you
Published by Carinsurence on December 8th 2011 | Insurance
If you have a newly purchased car and are seeking for the right type of auto insurance then this art...
The best insurance packages live in Maryland
Published by Insuranceindian Aauto on March 5th 2012 | Finance
Auto insurance is something that any motorist in Maryland needs to have. Many people would try to ov...
Participate careful game by choosing authentic Car insurance quotes
Published by Carolina James on December 9th 2011 | Insurance
The instant you are planning to make your purchase it is certain that you should to make your select...
Ways to purchase cheaper van insurance
Published by Robmarshall on April 17th 2012 | Insurance
Ways to purchase cheaper van insurance is most likely the major thing which might be out breaking ea...
Its possible to have low cost Alabama auto insurance
Published by Alabamaauto Insurances on January 14th 2012 | Finance
It’s possible to have low cost auto insurance Alabama especially if they search online for such of...
My cheap car insurance- your ticket to a perfect insurance policy
Published by Harrisonford on April 12th 2012 | Insurance
Companies offering cheap car insurance policies have become very important. Unemployed people or peo...
Coverage commercial general liability insurance offers to insured company
Published by Andrew Edwards on May 22nd 2012 | Insurance
CGL is quite popular plan while business owners want to cover-up the liability issues and transfer...
Find the low cost auto insurance online and compare the market
Published by Jameshaven on March 2nd 2012 | Insurance
In view of the current economic conditions of the world it is no wonder that everyone is looking to ...
Best Affordable medical insurance
Published by Lessardcasey on February 11th 2012 | Insurance
Shopping for affordable medical insurance is usually not something the average person has to do, giv...