Possible Repercussions of Committing an Auto Insurance Fraud
One reason why insurance companies in the United States are losing billions of dollars every year is the increasing rate at which auto insurance frauds are taking place. The losses borne by these automobile insurance companies are carried forward to the end consumers in the form of hiked premium rates and increased prices of goods and services. As a result of the frauds committed by such people, every policy holder ends up paying an extra $100 every year, on average.
Repercussions That You Can Bump Into
Apart from costing every member of the economy additionally, auto insurance fraud can end up with the culprit rotting behind the bars for all his life. Only if the culprits knew about the severity of the consequences of auto insurance frauds, they might think thrice before committing one. There are chances of being imposed with fraud litigation, criminal conviction and countless years in prison. Moreover, the guilty party can also encounter hefty fines and may be required to make up for everything that they deceptively tried to obtain from the auto insurance company.
In every state of America, auto insurance fraud is a very serious crime and the guidelines for punishing the perpetrator vary accordingly. Also, the number of years the criminal has to stay behind the bars is determined by the law of the state. Regardless of the differences that exist in the mechanism of the punishment of these offenders, one thing that’s inalterable is the given period of time that he/she is supposed to spend in jail.
Furthermore, if you are caught committing a vehicle insurance fraud and are held guilty of it, then this would dent your personal and criminal record for life, and probably portray you as a thief. So, if you ever try to apply for a job locally or internationally, your background check will expose your criminal record, ultimately eliminating your chances of being selected for a job and attaining a health or car insurance policy in future.
Majority of the states make sure that stringent and ruthless financial penalties are imposed on the offender. Paying thousands of dollars as well as reimbursement of the money stolen through each auto insurance fraud is a common sentence.
By and large, there are two basic kinds of insurance frauds: Hard fraud and Soft Fraud. While soft frauds are simpler to commit, even unintentionally, one can easily evade the punishments by reporting everything as honestly and candidly as possible. On the other hand, the penalties of hard frauds are cruel and callous, absolutely impossible to circumvent.
All in all, the best way to evade such consequences and punishments is being honest and open. Remember, when you cheat, the entire economy suffers!
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