When you pay your monthly car insurance premium, you may wonder why its so high, and whether you are being scammed. In fact, however, the culprits are usually the people with the insurance, and not the companies providing it. Want to know why? Here are some of the most common auto insurance ripoffs:
How about someone conveniently making a claim just as a major part is about to wear out? For example, just as the car's engine hits the 150,000 mile mark, an accident occurs that requires the engine to be replaced.
Some people will intentionally arrange to be in an accident. The crash is a low speed affair, but the driver claims that they have sustained major injuries and the insurance company has to pay out thousands in medical expenses. The scammer may even go so far as to claim that they have suffered a permanent disability that will keep them from ever working again.
There have even been reported cases where the person in the accident will tell their auto insurance that several other people were in the car and were also injured. Then the friends will settle for fees as well and give the insurance holder a percentage.
What may seem like a relatively minor scam, but can actually run into serious money is the person who, wanting to make sure that parts are replaced and not just repaired, will intentionally cause additional damage after the accident.
The last type of car insurance fraud that we will discuss is the type that comes from the auto repairer. If you've ever wondered why different repair shops will provide drastically different quotes for the price? It's because the money isn't coming out of your pocket, so they are pretty much free to provide whatever price they choose.
There are two different techniques that the car insurance companies use to combat the scams. The first is through the use of deductibles. Because each person knows that at least some of the cost will be coming out of pocket, it insures that you only use the insurance when absolutely necessary. Also, when you use your insurance, you price goes up to be insured and you wont get a cheap car insurance quote for up to 7 years from an accident. The last way they combat fraud is by making it a criminal offense that will put you in jail if caught coming fraud.
In the end, though, the people who are hurt most by fraud are the innocent people who do nothing wrong. They are the ones who have to make up for fraud losses in the form of higher premiums. Because every auto insurance quote has some amount factored in for fraud.
Car Insurance No License
When you are driving in a foreign country, the rules of the game change somewhat from what you are used to. Depending on the country, it is possible that they will drive on the opposite side of the road from that which you are used to. There rules about joining freeways, the maximum speed on those freeways and a multitude of other rules will have to be observed when driving outside the USA. If you go to Europe, you are likely to find that the rules of the road are somewhat stricter, and can be quite restrictive compared to what you are used to. All of this can be taken in stride as long as you are an attentive driver. It is also important to pay attention to the rules on car insurance.
As comprehensive as your car insurance may be, the chances are that it will be entirely meaningless once you begin driving in another country. This comes as a shock to many, as we tend to imagine that “fully comprehensive” means just that. This is what they call a “rookie mistake”. When driving overseas you may well find that you are required to have cover specific to that country. In order to make sure, it is worth checking on the Internet to see if they have any specific requirements. It may well be the case that when you hire a car in your country of destination the hire company will provide insurance cover, but it is worth being aware of the level of that cover and the options for upgrading it. Often the cover is pretty minimal.
It is of huge importance, therefore, that you inform yourself before you travel. Learning from one's mistakes is something that no-one should sneer at, but the idea of learning from your mistakes at the end of a several hour flight, in a cramped office in a corner of a very busy airport is something that no-one really wants to have to do. Keep in contact with the rental company before you fly, until you are certain that your journey will be covered by valid insurance. There is too much at stake here to leave anything to chance. Keeping it all above board at all times is the only option. Different countries have different ways of doing things, and the learning curve is already steep. It is a lot steeper when you are constantly worried about your finances, freedom and family.
Once you have your car insurance sorted out, it is then only incumbent upon you to make sure that you follow good housekeeping (or car keeping) procedures. When inside or outside the car, keep the doors locked. The chances of you being car-jacked are generally minimal to non-existent, but if it does happen you want to be prepared. If your car, or any part of the interior, is stolen or damaged due to your own laxness, you will often find that no insurance policy will be coverage enough for that eventuality. At that point, it is too late to fix things.
Both Susan Tanner & Levi Quinn are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Susan Tanner has sinced written about articles on various topics from Insurance Scams, Car Accidents and Insurance Quotes. To find out exactly how I got , visit my website about. Susan Tanner's top article generates over 12100 views. to your Favourites.
Levi Quinn has sinced written about articles on various topics from Family Concerns, Cars and Trucks. Do you need to find some extra cash in your budget? Visit Auto Insurance Rates Direct for fast, free th. Levi Quinn's top article generates over 90500 views. to your Favourites.