Insurance fraud causes insurance companies a significant amount of money. However, the ripple effect is that insurance customers are affected as policy costs can be increased. At one point or another, Ft. Worth, TX residents have fallen victim to an insurance fraud crime. Main Street Independent Insurance Agencies Inc. takes you through the different types of insurance fraud that happen.
Some drivers intentionally cause a collision with another vehicle to receive a fraudulent insurance payout. In such cases, you will find the other unsuspecting driver being faulted for an accident they had no hand in. If you ever suspect that you are being set up, document the accident and the extent of the damage. Also, be careful of people too eager to help and even offer towing services.
A driver will dispose of their vehicle in such a case, whether it is dumping it in a lake or burning it. On certain occasions, some drivers have sold their cars and claimed they were stolen. When this happens, an insurance company is expected to pay the driver through an insurance settlement to replace the vehicle stolen.
Exaggerated Costs of Repair After an Accident
Dishonest mechanics usually do this type of fraud. Some mechanics will use used parts to repair your car when you take it to the repair shop after an accident. However, they would send a bill to an insurance company suggesting they use new parts and the job took longer than it did. This type of fraud is committed for financial gain.
Faulty Airbag Replacement
This type of fraud occurs when a mechanic does not replace airbags after an accident. At times, repair shops will use salvaged airbags instead of replacing them with new ones. The mechanics will then bill the insurance company for new airbags to benefit them financially.
If you reside in Ft. Worth, TX, and want to learn more about auto insurance fraud, contact Main Street Independent Insurance Agencies Inc. We are ready to help you avoid becoming a victim of insurance fraud.