Pennsylvania Auto Insurance Fraud Costs All

According to the article “Insurance Fraud Costs All of Us Money” by Jeanette Krebs on Pennlive.com, 7 out of 10 Pennsylvania drivers say they would not attempt insurance fraud. That leaves about 2.5 million people who may consider fraud. The same group of polled people believe that those who commit auto insurance fraud are rarely caught.

Getting Pennsylvania auto insurance quotes already includes many factors most of which are based on individual information. But the economy, business stability and fraud losses are all considered when auto insurance rates are determined. This is why insurance fraud ends up costing all drivers on some level. The worst part is that it is extremely difficult to catch these perpetrators. According to the Franklin and Marshall University Poll about a quarter of respondents stated they would not report someone they knew involved in an insurance scam.

In 1994 the fraud prevention authority was created as a funding mechanism, making funds available to law enforcement and prosecutors to manage insurance fraud. The budget is approximately $11.6 billion which comes from insurance companies within the state. Part of the money is also used to educate Pennsylvanians about fraud, such as TV ads letting people know they can go to jail for engaging in insurance fraud.

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