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By: Liz Taylor, Car Insurance Analyst
CheaperCarInsurance.com

Cases of auto insurance fraud are currently sweeping through Tampa, Florida. the money these fraudulent cases are costing is having an impact on low auto insurance rates for drivers throughout the state. Innocent drivers are paying the price for these scammers on their insurance policy.

The Tampa Police Department has recently made 240 arrests for insurance fraud, leading to 156 convictions. This is good news as more of these scammers are getting put away and punished for their misdeeds. Unfortunately it has caused low auto insurance premiums to soar.

How are Scammers Conning Insurance Companies?

So how are these fraudsters pulling off scams to rip off the auto insurance companies? their staged auto accidents are in fact, not accidents at all. They are a means for collecting money through the insurance company for claims. This appears to be their method:

• They stage a collision, usually at an intersection
• File a false claim to the insurance company
• Pocket the money for personal injury and damages

There have been reported cases that some pay people to cause collisions then refer them to a particular health clinic. it is believed that the clinic was in on the scam as well, billing so-called patients who had no actual injuries. A recent police report suggests that the ‘patient’ walks into the clinic and signs a paper from the clinic’s owner. This makes it appear as though they have received treatment when they really haven’t.

Committing insurance fraud is considered a third degree offense. Those who have been convicted are facing as much as 5 years in prison. Statistics from the National Insurance Crime Bureau indicate that Florida has had more suspected fraudulent claims than any other state.

The fraudulent claims are having a negative impact on low auto insurance for victims of these accidents, law enforcement officials, and drivers statewide. the insurance companies are unknowingly paying the scammers for false claims and charging everyone else for it.

Investigators believe the rise in these schemes in Tampa is the result of scammers moving out of Miami as arrests were being made. one insurance spokesperson stated the low auto insurance rates drivers were paying have now increased approximately $200 to $300 annually due to these fraudulent claims.

Help Maintain Low Auto Insurance Rates for Others

You can take the following steps to bring low auto insurance rates for drivers by helping to stop these scammers. if you suspect or know someone who is guilty of insurance fraud you are advised to report it. given investigators have enough evidence to prove it, you could receive a cash reward for $25,000 to take these cheaters down.

• Always keep a safe distance from vehicles you are following
• If you are involved in an accident, have a camera on hand to take pictures of damages for the insurance company
• Take down notes about what happened from the accident
• Get information from the other driver as well as their license plate and witness information
• File a police report and be aware of unauthorized tow trucks that arrive at the scene

In helping to find and report these insurance scammers, you could be helping many drivers save with low auto insurance. Not only are these fraudsters causing problems for drivers with their insurance premiums, but it endangers innocent lives. It’s unfortunate that unsuspecting drivers are becoming victims to these crimes and it must be brought to an end.

Posted: March 06, 2010

Tampa Is Leading in Auto Insurance Fraud for Low Auto Insurance