If you are feeling the urge to file a false automobile insurance claim, there are ample reasons why you should think twice before getting tempted into a crime. The current insurance investigators are extremely efficient and well trained. They are aware about 10% all the claims filed are false, therefore they are extremely alert every time a new claim is filed. The insurance investigators use advanced software programs which can detect suspicious claims. The next step is very obvious, they just have to go after the person who has filed the claim.
There are at least 18 indicators defined by National Insurance Crime Bureau (NICB), which suggest when an automobile insurance claim can be fraudulent. The indicators include automobile’s gas consumption, customization of vehicle, mechanical problem history of car and policy coverage length among others.
The NICB investigators believe automobile theft come under any of the following four categories: -
1. These types of incidents happen when a person gets a non existent vehicle registered. Later it is reported stolen and compensation is claimed from insurance company.
2. Once someone gets a bank loan for a new car, an insurance policy is purchased as per rules. The car owner then exports the car and ships it abroad. The car owner gets both – sale price and insurance claim.
3. The car owner reports that the car has been stolen. The car is hidden for 30 days, which is a period long enough for the car owner to collect insurance payment. Usually, the car is found abandoned somewhere and requiring extensive repair work.
4. The car owner reports that the vehicle has been stolen and is found buried, submerged in a lake or even burned. In this case, the owner stages destruction of the car to claim insurance compensation.
Some areas are more under watch compared to others, because car thefts are a regular feature there. The insurance companies also run beneficial coverage options and payment plans. These plans are much better than facing prospects of fine, imprisonment or a criminal record by filing false automobile insurance claim.
