At one point in time in our history, insuring your car was optional. If you ask the older folks, they will remember a time when they didn't have to pay for car insurance at all. Times have changed though and even if you argue that you do not need insurance at all. No person in the United States has a choice on this because car insurance is mandatory and has been for decades.
This is where cheap car insurance comes in but the main question is, is cheap car insurance still possible to find? The obnoxious rise in prices of almost everything has made it harder for the average American to put some money aside for a rainy day. Instead of you putting some money on investments or depositing in your savings account, you would have to pay premiums aside of course from bills for your utilities and groceries and for some –rent.
To make things worse for Americans, insurance fraud is so prevalent that insurers lose a lot of money each year because of it and by a lot of money this means billions of dollars lost in a wormhole. Many are not concerned about insurance fraud though because it is after all the insurers who have to deal with this burden. Well the response to that is a yes and a no. Yes, insurance companies have to take care of this in a way that they try to ensure that those who file claims are filing legitimate claims but no, they do not really lose that much money because policyholders would be paying for their losses anyway. Unfair isn't it?
As long as fraud in this industry exists, the average American would have to shoulder that extra expense for those billions of dollars lost to false claims. This is the reason why policyholders of any car insurance company should educate themselves about car insurance fraud.
Alfred Manes, who wrote "Insurance Crimes" said that insurance fraud has been in existence ever since the enterprise called insurance began. This crime has escalated in the past few years. A 2006 estimate done by the US Coalition Against Insurance Fraud says that during that year around $80 billion was lost and it's not just happening in the United States.
Due to fraud, insurance companies have to put in place certain departments that deal with insurance fraud and of course, even if this should be their responsibility because they are the ones who are directly affected by this –at least in theory, it is costing policyholders because they'd have to "pay" for such services. It is rather unfair of course that a person without fault has to shoulder such expenses considering that the original amount that one has to pay i.e. without these additional charges, are not necessarily cheap.
Fraud is an unfortunate thing especially for the average American who pays his or her insurance premium promptly and hasn't even filed any type of claim. Cheap car insurance can still be attained though if you help authorities detect car insurance fraud in your neighborhood.
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