Smart Auto Insurance Blog

Auto insurance fraud is a serious problem and it ends up costing American drivers billions of dollars.  The more auto insurance fraud that is committed, the higher auto insurance rates must be to combat the fraud dollars lost.  The Coalition Against Insurance Fraud estimates that insurance fraud costs Americans around $80 billion per year.  This outrageous statistic worries insurers as they try to keep prices down for their customers.  Not only does it hurt American drivers, but it hurts the insurance company’s bottom line.

First Acceptance Insurance, a provider of quality auto insurance in the industry for over 100 years, is taking steps to limit the amount of fraud affecting their company.  They’ve outlined the necessary steps to take if fraud is suspected.  They offer phone numbers, and emails including information for the National Insurance Crime Bureau.  There’s an email for Special Investigations Unit which is dedicated to stopping fraud in its tracks.  Taking the time to report suspicious behavior is greatly appreciated by these fraud units.

Representatives are available to talk to individuals about potential fraud situations.  They are trained to recognize fraud early in hopes that dollars can be saved and the losses aren’t passed onto honest drivers following the rules.  During these tough times, perpetrators are feeling desperate and are turning to dishonest practices to make money.  Even small embellishments on insurance claims can add up to big costs that hurt the entire insurance industry.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Auto insurance fraud continues to be a major problem across the nation and it’s affecting how much everyone pays for their car insurance quotes.  With proper monitoring, it’s possible to decrease the amount of fraud out there but it needs to be a group effort.  South Carolina Attorney General, Alan Wilson, stated that about $12 million was reported in South Carolina alone last year in auto insurance fraud.  This was found in a recently released report according to the article by Jessica M. Karmasek on the Legal Newsline website.  This astounding number needs to come down but it’s hard to determine exactly how to do this.

Falsified claims are the number one cause of auto insurance fraud and this is why most auto insurance companies have a claim review team in place.  Suspicious claims are sent to an expert department for review and if considered possible fraud the claim will be investigated.  Unfortunately, the downside to this process is that not all of the suspicious claims are truly fraud so innocent people end up getting the run around when submitting a claim.

With online auto insurance quotes a popular method for obtaining auto insurance, it’s no surprise fraud on the internet is happening.  Most companies, including First Acceptance Insurance and Progressive, offer quotes online for auto insurance policies.  Checks are in place to ensure the policy being set up is for the right person and the right vehicle.  Credit report information such as social security numbers, addresses and date of birth are used to confirm identity.  This is not a perfect science either and perpetrators can even alter credit reports if access is obtained to the credit reporting agencies.  Hopefully, over the next few years, monitoring will improve and the amount of fraud will decreased, ultimately lowering our auto insurance rates.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Auto insurance fraud continues to be a problem across the nation.  For years, auto insurance companies have worked to eliminate fraudulent claims and fraud rings.  Unfortunately, it’s still prevalent and costing consumers a lot of money.  Every time fraud is committed our premiums increase and this is not fair to the customers following the rules.

First Acceptance Insurance is working hard to limit the amount of fraud affecting their bottom line.  According to their website, they suspect fraud costs insurance companies and their customer billions of dollars.  The Coalition Against Insurance Fraud says that approximately $80 billion a year is lost because of fraudulent activity.  This is staggering and extremely frustrating to know it’s happening everywhere, all of the time.

The good news is that most auto insurance companies, including First Acceptance, have fraud departments in place, working around the clock to fight fraud.  First Acceptance, for example, has a specific team and information on their website to report fraud.  They also list information for the National Insurance Crime Bureau, who they work with, to combat this ongoing problem.  If you suspect insurance fraud, contact your insurer with information.  It may end up saving the rest of us a lot of money.

Finding an auto insurance policy that is perfect for you is possible, you just have to ensure you are getting the education you need.  Once you understand your state laws, and have determined your personal needs you can put together the different pieces of an individualized auto insurance policy.

The first part of the policy tends to be liability insurance since that is the most important part.  If you only have minimum liability you may be taking a risk in case you hurt someone so understand the financial implications of upgrading to better liability insurance.  Based on the type of car you drive you may want collision coverage and depending on how many drivers you have in your household you may want to combine policies.

Shopping around is definitely important not only for price but for various benefits such as paying online, accessing information through your phone, superior customer service or efficient claim processing.  Companies ranging from First Acceptance Insurance to big companies such as Progressive Auto Insurance offer a wide array of benefits to suit their customers’ needs.  You can find a helpful agent to walk you through the variety of benefits made available and the differences in cost.  With the right research you really can find the most perfect policy suited just for you.

Auto insurance quotes have been increasing over the past 2 years and they are expected to keep increasing in 2010 according to the article “Be Prepared For an Increase in Car Insurance Premiums” by Justin Vasquez on cheapercarinsurance’s website.

The Office of National Statistics estimate insurance premiums to increase substantially.  States such as Montana can expect increases up to 12%.  There are certain types of cars that will experience high increases in auto insurance quotes.  Some  of these include the Kia Sportage, Hyundai Sonata, and Kia Lotze.

Most companies will be experiencing higher premiums, but many will still be competitive including Acceptance Insurance.  National US averages show that about 23 states have already seen an increase in auto insurance quotes since January ‘10.  Because of these increases many are driving uninsured and the Institute Research Council says about 16% of drivers will not renew their policies which is bad news for insured drivers and insurance companies.

First Acceptance Insurance has a very useful section on their website that outlines your auto insurance policy in simple terms.  To summarize, there are generally 5 parts to a typical auto insurance contract.

Part 1 is called the Declaration section, which is unique from customer to customer.  Part 2 is the Coverage Parts or Insuring Agreement.  This sections discusses the coverage options and coverage limits.  Part 3 is Exclusions which highlights your policy’s limitations.  Part 4 is Conditions which outlines legal responsibilities.  Then there is Part 5 Definitions.  This section goes over terms and rights of the customer and insurer.  This section is sometimes referred to as fine print.

The names of the various sections may vary from company to company but the general points are discussed.  It’s beneficial to understand each section of your auto insurance policy so you can easily compare benefits as you shop around for auto insurance rates.