Auto Insurance Companies Getting Tougher
Auto insurance companies are getting more and more strict with paying out claims as the recession is forcing consumers to request more money to cover damages. This is according to the article “Under-Insurance Hitting Thin Wallets” by Roeland Van Der Bergh on stuff.co.nz.
Another downside to this economy from the viewpoint of the auto insurance company is the rising rates of insurance fraud according to the article “Recession is Fueling a Boom in Insurance Fraud” found on the Times Dispatch website. This increase in fraud is keeping state regulators and law enforcement very busy across the nation.
A recent survey conducted by the Coalition Against Insurance Fraud of 37 state insurance fraud bureaus found that the down economy has had a significant effect on the amount of fraud. The bureaus reported an increase in fraud referrals and new investigations in all 15 categories of fraud covered in the survey. Other tough financial times such as the influx in gas prices a few years ago. As gas prices went up, so did the number of automobile fraud cases where people fraudulently reported their cars as stolen, or destroyed just to get the insurance payout from the auto insurance company. People will do extreme things when faced with financial adversity.
Tags: Auto Insurance, auto insurance claim, auto insurance companies, auto insurance fraud, Auto Insurance Rates, economic recession, insurance fraud
