All of the circumstances of automobile insurance fraudsin the United States are causing most of the automobile insurance organizations to lose billions of dollars each 12 months. The losses that these car insurance businesses have incurred are then passed on to consumers in the kind of larger rates and premiums. According to the newest estimates, an typical automobile insurance policy holder pays an additional hundred dollars each yr due to frauds committed by other people.
Not only does auto insurance fraud end up costing every person much more money, it can also land you in jail. The penalties for these who are caught committing auto insurance fraud are serious. You will probably face a fraud lawsuit, a criminal conviction and a number of many years in prison. You could also encounter significant fines, as nicely as having to pay back every thing you stole from the insurance company.
Each state considers automobile insurance fraud a criminal activity and they have their very own recommendations as to how the offender would be punished. This simply means that the quantity of many years that a convicted offender would be serving behind bars varies one state to another. But despite of the differences in the method of punishing these offenders, there is one thing that a convicted suspect would surely receive as a outcome of what he or she has done and this is spending a prescribed phrase in prison.
If you are caught committing automobile insurance fraud each incident will go on your permanent criminal record as fraud and probably as theft. This indicates future background checks will always come back with your criminal record displaying. This could maintain you from securing a job, a residence and car insurance.
Most states also assess stiff fines, as substantial as tens of 1000’s of dollars, additionally restitution money for each and every car insurance fraud crime you commit. Each and every state is various, but each state has similar harsh financial penalties.
There are two types of auto insurance fraud: Difficult and soft. Delicate fraud can be easy to commit, even accidentally. You can steer clear of delicate fraud by reporting all injuries and damages as accurately as feasible. Usually be completely truthful and unbiased when reporting an incident to your insurance organization.
Penalties for hard automobile insurance fraud are even much more serious. In these situations a person has to set out to intentionally defraud the insurance businesses, seeking to secure payments without merit.
When it comes to automobile insurance fraud, bear in mind, honesty is always the very best policy. If you cheat the insurance business, everyone loses.