Car Insurance Fraud In The Recession
In the new state of the economy, people are finding that they are needing to tighten their budgets more than ever before. The big, luxurious SUV you bought is now costing you an arm and a leg in petrol and maintenance. People simply cannot afford it anymore.
As the recession looms in on most countries in the world, people are getting desperate. They are losing their jobs and finding themselves with heaps of bills piling up on their doorsteps. When people get desperate, then they start devising plans to get an extra load of cash wherever possible. For some of these people the idea of getting a nice car insurance payout seems like a good idea. They think to themselves that they can report their car stolen, and then get paid out a lump sum by the car insurance company. With this sum they can perhaps buy a much smaller cheaper car and then have a bit of extra cash left over for a much needed injection.
There have recently been reports of cars, even luxury ones, being found charred and burnt out in deserts, driven off cliffs and there is even a case in America of a car that was found after it had been buried! This all boils down to car owners’ desperate attempts to pretend their car has been stolen in order to claim back from their car insurance company. Unfortunately, it can be blindingly clear to an insurance investigator that fraud is involved, as it would not take a rocket scientist to realize that a thief would not steal a car only to then set it alight or throw it off a cliff!
The penalties for this kind of fraud are very steep, involving hefty fines and even jail time. It is fraud after all. It is better, when faced with a bad financial situation, to first seek help. Go and talk to your finance house or the people who collect on your car repayments. There is a chance you may be able to strike up a deal or even trade your car in for a cheaper model.
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