More Auto Insurance Impacts From Economy?
The first major impact on auto insurance brought on by the economic downturn that received a great deal of media attention was that many people were going without auto insurance because they couldn’t afford it despite the fact that it is required by law. In less severe cases they were simply reducing their levels of auto insurance coverage.
Another impact to auto insurance has been cases of auto insurance fraud.
- In Hawaii, auto insurance fraud convictions are up 61% from 2007 to 2008.
- Cases of abandoning vehicles and then reporting them stolen are up 33% over same time frame
- Pennsylvania auto insurance fraud cases are up 30%
Industry experts say this phenomena is not unusual, auto insurance fraud increases are typically experienced during an economic downturn such as the one we are experiencing today. Unfortunately, other drivers pick up the tab on the $6 billion in fraud cases in the form of excess auto insurance payments.
Tags: Auto Insurance, auto insurance fraud, hawaii auto insurance, new york auto insurance, pennsylvania auto insurance
