Recession Related Car Insurance Fraud
The recent and gradual decline of the worldwide economy has left consumers grasping at their wallets and scrounging for money wherever possible. People are very nervous, afraid that they are going to lose their jobs, and in many cases, they are losing them. This leaves them with big, expensive cars that cost them an arm and a leg in maintenance and upkeep, along with high car insurance premiums.
People are getting extremely desperate, especially at the thought of losing their homes and even being able to afford food to feed their familes, thus making them resort to car insurance fraud. How they look at it is that if their car is conveniently “stolen,” they will get paid out, be able to buy a much cheaper car, and then still have a little bit of money left over for a cash injection. What is happening more frequently is that people are basically doing anything they can to get rid of their vehicle so that they can report it stolen and then claim back from insurance. This form of fraud is now becoming extreme, with people setting their cars on fire and also driving them off cliffs! Unfortunately, once these cars are recovered, the car insurance companies are able to take out the necessary steps to punish these offenders. Punishment can range from hefty fines and then even to jail time!
The problem is that although this may seem like a foolproof way to make some extra money in desperate times, the repurcussions when the car is found are dangerous. The car insurance investigators are wise and they know a thief would not steal a vehicle and then destroy it.
Due to the recent increase in car insurance fraud, people are being advised to rather discuss their financial problems with a bank or their motor vehicle finance house. This way, they could possibly talk about restructuring the repayments on their vehicles, or may even be able to trade their car in for an older model. Purchasing a cheaper model will also lower your car insurance premium. It is far better to explore other options than to potentially face criminal charges for fraud.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment