It has been reported by way of car insurance news that insurance companies specifically car ones are attempting to catch out fraudsters by using social networking sites. This is because this fraud is costing the industry a lot of money.
It has been reported that increases of eleven and a half percent have taken place on comprehensive cover. This is very unfair to the drivers that are not committing fraud. It has been reported that this is causing premiums to increase at about sixty-three dollars per year. This makes it more important for people to shop around and get the most cost effective cover possible.
The recession is believed to be part of the reason for this fraud taking place. It has forced people to become dishonest, fraud gets committed and the premiums escalate. Unfortunately, the innocent suffer.
Certain social networking sites are however exposing this by sharing information. People are submitting messages daily on a twenty-four seven basis. This is helping the industry somewhat.
What the fraudsters may be unaware of is that this information may be used in court, as the information was made public via the site. This makes this news of immense value to the carrier companies. Ultimately the responsibility of these posts lay with the social networking sites as they control privacy issues.
There are two main kinds of fraud. One is where claims are exaggerated in order to receive larger payouts and the other is where accidents are manufactured on purpose so claims can be made. The tragedy with this kind is that innocent people are hurt in these accidents.
A few legal companies have reported success by using information accessed on these sites. They have been able to get evidence that has prevented the unnecessary paying out of claims. It has saved carriers thousands.
Third party theft and fire premiums have increased by twelve point seven percent. This has not helped the man in the street as the high cost of living is already eating at his dollars. Some reports that while crime may be reducing this have been negated by the high rate of fraud going on currently.
Online applications have been blamed to an extent as it is to provide false information via this medium and it is even easier to obtain coverage than it ever has been in the past.
All of the above information highlights the importance of keeping an eye or an ear on car insurance news, so that you know when to look for cheaper cover.
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