How car insurance fraud drives up your premium

How various types of car insurance frauds lead to hike in insurance premium:

Drivers in Ireland are worried about the hiking car insurance premiums. Responsible drivers do not want to skip buying car insurance in Ireland but the high-cost premiums are cutting a hole in their pocket. The companies providing car insurance Ireland also do not happily increase the car insurance premium because they know that it will have an adverse effect on their sales. However, companies have to increase car insurance premiums because of multiple reasons.

The chief cause of hiking car insurance premiums is car insurance fraud. Insurance frauds are not only committed by the insurance executives but also be the insured drivers. Whether the fraud is made by a mediator who helped you in buying or renewing insurance policy or whether it is committed by other insured drivers, every fraud contributes to hiking your car insurance premium. Here you can have a glimpse of types of car insurance frauds and how they increase your car insurance premium.

• Staged crashes: Some car drivers stage car accidents for seeking car insurance claims whereas others cause additional damage to their vehicle when it met a legitimate accident with a view to seeking high claim amounts. Raising false witnesses for passengers traveling and then claiming for their injuries even though no passenger was actually traveling, is also commonly experienced by insurance companies. Many instances are seen countrywide where the car is crashed deliberately so that a claim can be made to car insurance companies for reimbursing the cost of damages of the car under the cover that these damages occurred due to the (false) accident. But people forget that if they will make false claims from insurance companies then they will have to pay higher premiums while renewing a policy and they will also lose their no-claim bonus at the time of the next renewal. Also, their false claims alarms insurance companies and they increase insurance premiums for all drivers as a preparation to meet such false claims.
• Stealing of premiums: A fraud insurance executive may steal the premiums you believe you are paying for your car insurance in Ireland. This may come to you as a shock whenever you file a claim at the time of need as your policy will expire in the absence of paid premiums and you will have to pay higher premiums on buying a new car insurance policy. So, it is better to be vigilant and pay insurance premiums directly to your insurance company through their website. Also, never share your website login credentials with any insurance executive, it is supposed to be confidential.
• Sliding scam: An insurance executive sometimes slips extra coverage in the policy of the customer (without his knowledge) irrespective of his requirement. This unwanted extra coverage will add to the car insurance Ireland premium cost.
• Claim for Stolen cars: A few drivers also leave their old cars anywhere and claim that their car is stolen, so that they get good reimbursement from their insurance company. This increases the cost for insurance companies which ultimately is recovered by charging high insurance premiums from all customers.

There are many other such types of insurance frauds made either by the insured car drivers or by the insurance agents. However, all such claims are not paid by insurance companies and their investigation team figures out the authenticity of each claim made. In case a fraud claim is found, then the policy of the concerned insured driver is considered canceled and previous claims, if any, can also be recovered from the insured driver by the insurance company. But these claims and other disputed cases increase legal costs for insurance companies. To compensate for this increased cost, insurance companies hike insurance premiums for all categories of drivers. The safe and blameless drivers fall prey to the shrewd ones indirectly. Furthermore, the statistics which help insurance companies to devise car insurance in Ireland premium turns out to be unreliable as they include figures of fraudulent accidents or theft or other issues that can call for a car insurance claim. Thereby, incorrectly higher statistics which form the basis of devising insurance premium also become a reason for high insurance premium cost.