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What is No Fraud Car Insurance? 

 September 25, 2013

By  LMW Attorneys

No fraud car insurance has become a major topic in New York, where fraudulent claims are among the highest in the nation. The goal is to ensure that anyone that is involved in an accident has medical and repair costs coverage if an involved party is somehow linked to fraudulent behavior.

No fraud car insurance provides an additional layer of protection for consumers who may unknowingly become victims in an auto accident.

What are the different types of fraudulent behaviors that are associated with no fraud insurance?

Fraud is rampant when it comes to auto insurance, which costs millions to those who pay premiums. In areas like New York City, as many as one-third of claims filed are believed to be fraudulent in nature. In some areas, the incidence of fraud can be much higher.

When customers have repairs performed on their vehicles, the company may replace the airbag with cheaper versions to cut repair costs. Individuals can seek out approved mechanics that are recommended by their insurance company to avoid this form of fraud.

A person can become involved in a calculated accident. Two vehicles can create the condition for a crash to occur. The person making a turn is at risk for collision because of the angle at which the other vehicle is turning. Some people stage well-timed parking garage collisions to guarantee that a crash occurs.

Windshield replacement scams are also commonplace. A person can be approached for the service and assured that the costs for the repairs are free. If approached, one should verify whether or not the service is covered in the policy and get any repairs done by a reputable repair company for safety purposes.

Towing scams are also common. A tow truck driver can target a person who may lack roadside assistance coverage and charge extremely high fees for the towing service. Most insurance companies and roadside assistance programs have negotiated predetermined fees set for approved vendors in their network that offer these towing services.

Some individuals provide false information to their insurance companies to lower their premiums. Failing to add a person to a given policy or entering a fake address to lower the amount of the premium are examples of how individuals can use loopholes in the system for lower premiums.

No fraud insurance is designed to expedite the handling of claims for parties involved in accidents that have filed legitimate claims and haven’t knowingly participated in any fraudulent behavior.

The auto insurance protects consumers from denial of legitimate claims and keeps costs low for those who pay their premiums. Curbing the number of fraudulent claims from providers, garages and individuals is the goal of having no fraud car insurance policies for consumers.