South Carolina Car Insurance and Fraud

South Carolina car insurance buyers are committing “soft” fraud when they are not honest when reporting a claim to their insurance company in an attempt to collect more money than they are entitled to under the policy. Incidents like exaggerating the injuries sustained in an accident or over reporting property damage to a vehicle to get a higher payout are examples of this type of dishonest behavior.

Car insurance fraud also includes cases where people make claims stemming from events that simply never occurred. These claims could be for injuries, property damage or both. Some people even become involved in staging an accident so they can file a personal injury claim.

There are a number of factors that contribute to car insurance rates in South Carolina, and fraud is one of them. Approximately 1 in 10 South Carolina car insurance claims are either inflated or completely fraudulent, which means that all consumers pay more for their coverage. The insurance companies factor this expense in when setting rates for all their customers, not just the ones who have committed fraud.

A consumer who wants to avoid paying more than they have to for South Carolina car insurance has options. He or she should definitely shop around to get the best possible rates for. Each insurance company has its own criteria for setting rates for its customers, and spending some time comparing coverage options can lead to savings.