One of the most significant reasons behind the rising costs in annual insurance premiums is the issue of auto insurance fraud. In recent years, carriers have worked tirelessly to increase their level of awareness over this problem and an increasing number of motorists are now being held accountable for fraudulent behavior.
Auto insurance fraud is far from being a victimless crime. In an economic climate where even the largest carriers are feeling financial pressure, more and more companies are having to increase their policy prices to compensate for dishonest customers looking to squeeze money from ever-decreasing profits. Because these increased costs are passed on to other customers, the general public has a tendency to suffer just as badly as the insurance companies.
The punishments being administered for auto insurance fraud have become more serious in recent years and those that operate outside of the confines of the law can expect to receive harsher penalties as insurers become increasingly aware of fraudulent characteristics.
As well as running the risk of heavy fines and imprisonment, fraudulent drivers can also see their claims dismissed if proof of irregular behavior can be presented. Additionally, those found guilty of auto insurance fraud can be ‘blacklisted’ and this will make it increasingly difficult to buy car insurance in the future. Indeed, many motorists found guilty of auto insurance fraud find it difficult to obtain credit for other items such as home purchases or loans.
Presenting false information when making an auto insurance claim is deemed illegal and as well as facing stricter punishments than ever before, fraudulent behavior will also result in a criminal record that not only lowers the social status of an individual but also sees them branded as being untrustworthy. In many cases, auto insurance fraud has ultimately cost perpetrators their jobs and their livelihoods.