Our FREE professional service is designed specifically to connect people with the right attorney to help them with their legal needs. This video provides important information about auto insurance fraud. You will find out that auto or car insurance fraud is committed against an insurance company in order to receive financial gain by means of exaggeration of injuries from an accident, staging the theft of your car and/or causing intentional damage to your car. The research of National Insurance Crime Prevention Bureau has revealed that auto insurance fraud costs Americans $20 to $30 billion annually. Auto insurance fraud can be divided in two types. The first one is hard insurance fraud, that consists of intentional set up of a situation such as car theft or an automobile accident. The second one is called soft insurance fraud that is regarded as a minor offense. This happens when a person is trying to take advantage of a situation that has already occurred by pretending that the injuries were more serious that they actually were. Asking yourself how can auto insurance fraud happen? Well, here are the answers! The cost of the car insurance depends on where you live. Often people who live in expensive parts of the country register their cars in other places, where insurance costs are lower. So, false registration is already a fraud. According to Insurance Information Institute automobile/car fraud costs the insurance industry approximately $16 billion a year. Actions like exaggerating repair costs or staging accidents are also fraudulent. Auto insurers also pay billions of dollars a year to “threat phantom” injuries. Getting rid of the car, that means that the owner leaves his/her car somewhere, burns it, sells it or even dumps it and then claims it was stolen, is regarded as a very serious car insurance fraud. Most auto fraud convictions that are considered “soft fraud” are misdemeanors that can result in fines up to $15.000, probation and sometimes jail time up to 5 years. If destruction of property is involved, or someone dies while staging an accident, the crime qualifies as a felony. Penalties for felony convictions are more severe, they include jail time between 5 and 10 years and/or fines up to $150.000. It is easy to commit soft fraud, sometimes even unintentionally. If you report damages or injuries to insurance companies, make sure you remain honest. An experienced attorney may provide you with all legal information. With us you have nothing to loose. Come and visit our site at http://www.legalbistro.com.
