Florida Auto Insurance Glossary:
Automobile Insurance Fraud:

Automobile insurance fraud is a way by which an individual or an insurance provider claims more money than they are entitled to receive. Automobile insurance fraud may include deliberately staging a car accident or a claiming for high amounts than the actual loss suffered. Automobile insurance frauds are not peculiar to insurance policy holders, even the automobile insurance providers indulge in fraudulent activities. Insurance companies commit fraud by denying payments to insurance claims. In recent time the number of automobile insurance fraud cases has increased sharply. Studies have suggested that one in every three auto insurance claims is fraudulent.

The different types of automobile insurance fraud:

• Submitting a fake accident report:

In this type of insurance fraud, the insurance claims are made by submitting a false police reports. Corrupt lawyers help the frauds to submit a fake accident report. After the report is filed and processed, the frauds collect a huge sum of money for personal injury damage and medical treatment.

• Staged accident:

This is one of the most common automobile insurance fraud cases. Here two drivers plan a accident and deliberately collide with each other. Often the collision is staged at a busy street where there is several witness. Once the accident is staged both drivers claim compensation for loses from their respective insurance providers.

• Caused Accidents:

Caused accidents are slightly different from staged accident. Unlike staged accident, in caused accident only one party plans the collision. The fraudulent person would cause the accident and would blame the other party for the accident and file claim for their losses.

Automobile insurance fraud is done with only one intention - to get money.

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