Compare Auto Insurance

Enter your zip code

Insurance Library

QuoteLab.com

What Car Insurance Fraud Looks Like, and Why It Costs You Money

It's not often that the seedy world of car insurance fraud comes to light. Like most criminals, they would prefer to stay out of the spotlight. But that changed in New York City a few days ago when a surveillance camera reportedly caught eight people who were staging the wreck.

Authorities told the New York Daily News that they considered it a case of car insurance fraud because the damage to the vehicles at first seemed very minimal compared to the injuries that the eight occupants suffered in the Bronx accident.

How They Got Caught for Car Insurance Fraud

Alleged video of the incident shows three vehicles circling a block, and New York Police Department officials argue that the behavior shows they were trying to find a place where there would be no witnesses. Without the surveillance video, they argue that the insurance companies would have had to pay out the more than $40,000 it was billed.

The other key evidence is the fact that the same vehicles were involved in two accidents in the same exact location within a short amount of time, as the Gothamist reports. All eight passengers have been charged, but the problem is much larger.

Car Insurance Fraud May Actually Be Growing

We've previously detailed the different types of car insurance fraud, whether they target health insurance companies or car insurers. But in states like New York, Florida and California, the problem isn't going away, and in some cases may be growing. The high number of fraud cases combined with a large number of uninsured drivers increases rates.

And that's a shame, especially in a state like Florida where the total cost of a car insurance quote is generally middle-of-the-pack, even with those cost drivers. Imagine what it would be with less fraud, and you can understand why politicians in Tallahassee are considering increased auto fraud task forces.

And it's why even little issues like the Bronx car accident fraud case can add up, and cost you hundreds of dollars over the lifetime of your driving career on car insurance costs.