'Cash for crash' scams fuel sharp rise in insurance fraud

A surge in so-called "cash for crash" scams and fraudulent whiplash injury claims is being blamed for a sharp rise in insurance fraud detected by Britain's biggest insurer.

Two thirds of people would turn a blind eye to insurance fraud, a survey shows. Photograph: Image Source / Rex Features

Aviva said it discovered more than £110m worth of fraud in 2013 – up 19% on the previous year – and that it was currently uncovering 45 fraudulent claims a day.

However, while policyholders submitting inflated or invented claims for supposedly stolen or damaged valuables is still an issue, Aviva said that increasingly, insurance fraud was carried out by third parties making claims against its customers – for example, for spurious injuries as a result of an accident – and also by organised gangs.

A combination of factors including the challenging economic climate, the fact that many people see it as a victimless crime, and a lack of effective deterrents are all helping to drive up the number of cases of insurance fraud, Aviva warned.

The most common type is motor injury fraud, which accounts for 54% of Aviva's total detected claims fraud costs. More than half of these involve cash for crash scams, where people submit false claims for damage and personal injury in relation to car accidents that either never happened or were staged.

Tom Gardiner, head of fraud at the insurer, said: "We are witnessing a trend toward third party injury and organised fraud. For example, in 2013 we identified fraud in one in nine third party injury claims."

Aviva is currently investigating more than 5,000 suspicious injury claims linked to known fraud rings – an increase of 20% since 2012. TheInsurance Fraud Bureau estimates that one in seven personal injury claims are linked to suspected cash for crash claims, with the total annual cost to insurers for these scams estimated at £392m.

The company's largest successful fraud prosecution involved scores of organised and bogus whiplash claims with a potential value of more than £5m, where sentences of between four and seven years were handed down. But in other cases, those convicted have received suspended sentences, community service and fines of a few hundred pounds, which Aviva said "serves as little deterrent for the future".

One problem is that while the vast majority of people who are asked say insurance fraud is unacceptable, many turn a blind eye to it, said a company spokesman. A survey showed that two-thirds of people would not report it to the police if someone they knew committed insurance fraud, a 53% increase compared to a 2008 survey by Aviva.

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11 Expert Tips for Saving on Car Insurance

My friend Lynn works for a major U.S. insurance company. I recently asked her for tips to help people save money on auto insurance. I expected maybe a few quick ideas, but she went above-and-beyond with the following detailed list. If you own a car, you should read these tips. For readability’s sake, I haven’t blockquoted this, but it’s all Lynn.

Note that every insurance company is different — not all of these ideas work everywhere. The first thing you can do to save money on auto insurance is to self-insure as much as you can afford. Do this in the following ways:

• High deductibles. Everyone preaches this, yes, but it’s usually the easiest way to cut costs. Usually. (If your car is over ten years old, the savings may be minimal.)
• Remove towing. Good maintenance and planning can save you money. Don’t run out of gas. Don’t lock your keys in your car. Make sure you have a spare and know how to change it. Sometimes your car will break down, but if your car is well-maintained, it won’t happen often. You pay $10 – $30 a year over the life of your policy and one tow costs $100. Note that in the event of an accident, towing is almost always covered under collision.
• Remove car rental. Small economy cars cost about $20 – $25 per day to rent. Car rental is $20 – $40 per year. Play the odds. If you rent a car on vacation, your insurance will cover you while driving that car. Don’t pay for the extra coverage. The only things it offers are:
  1. Zero deductibles. You go all year long with your deductibles, why change now? Also, if you pay for the car with a credit card, they may pay for any out of pocket in the even of an accident.
  2. Downtime coverage. Downtime means that while the rental car you wrecked is in the shop being repaired, it can’t be rented out to other customers and they can ding you for the daily fee. This may be an issue if they can show that all other cars were rented out and they lost money because of you — Hawaii is notorious for charging this. But, again, it’s a risk you might decide to self insure rather than pay $21 a day for the insurance.

Aside from self-insuring, there are other steps you can take to save on car insurance.

• Shop ahead. Before you buy your next car, check on insurance. Many people assume that SUVs are expensive and Neons are cheap. This is not necessarily true. Some companies will increase your liability based on the cost of damages your type of vehicle may inflict — big trucks cause big damage. However, they also rate the autos based on how likely they are to be damaged in an accident, how often they are stolen, and how badly driver/passengers are injured. That Neon (or Jetta or Honda) is going to be a lot more expensive than you think. Many companies will have websites that will give you lists of safe and lower priced cars. (Saturn is a low insurance car because it has dent-resistant doors.)
• Think twice about after-market gizmos. If your vehicle is totaled or stolen, the insurance company will determine a fair market or actual cash value. They will look at your vehicle as a “whole package.” Even if you paid for $3,000 in after market items (wheels, spoilers, stereos, exhaust, etc.) they may only add $1,000 in value to your vehicle. It’s not dollar for dollar.
• Have all of your insurance in one place. Often, the more types of policies you have, the more you save in discounts.
• Find out if your insurance company offers any low-mileage breaks that you qualify for.
• Can you take a safety-driving course? Some companies offer a discount for this.
• Do NOT pay monthly. Your carrier will charge anywhere from $3 to $5 per month for this type of billing. Pay every six months if possible. If you must pay monthly, do an auto pay — the charges are less because they only send a bill if the amount changes.
• This might not be a money saving tip, but insurance companies are state regulated. They must file their rates with the state and be able to justify any increases these are public record as are any types of complaints or fines. For example, if you’re in Oregon, you can check out your company and/or agent

• Most companies now use aspects of your credit to determine your rate. It is illegal for them to do this mid-term — as long as your policy is continuous without any lapses, they can’t use external info to change your rate. They can only use claim and ticket info. However, all newly added vehicles can be affected by credit. If you have good credit, this may be to your advantage. You are allowed to request that they re-check your score once per year. However, whatever the score is, you’re stuck with it. If it comes back bad and it raises your rate: too bad. But, if you have a policy that was written when 

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Car Insurance in Israel

Car insurance in Israel is split into two parts:

• Compulsory Insurance (Bituach Hova)
• Comprehensive Insurance (Bituach M'kif)

Compulsory insurance:

As its name suggests, all cars are required by law to be insured with a compulsory insurance policy, and it is an offense to drive a car without one.

The compulsory insurance covers personal injury and death (G-d forbid) only, for the driver of the car, passengers in the car and third parties. The policy does not cover any kind of damage to the vehicle or third party property. The compulsory insurance policy is a no-fault insurance policy.

The rates for compulsory insurance vary by as much as 15% between the different insurance companies, the two main factors affecting the premium being the age of the youngest driver and the size of the engine. You should shop around for compulsory insurance, since there is in any case no formal requirement that you purchase compulsory insurance from the same company providing you with comprehensive insurance. However, you should be aware that insurance companies sometimes offer special conditions if you purchase both insurances together. There is no deductible on compulsory insurance.

Comprehensive insurance:

Comprehensive insurance covers your car for theft, total loss, partial loss because of accident, whether caused by the driver of your car or as a result of damage to your car by another vehicle, third party property liability insurance, personal effects up to a certain amount, radio/tape/CD up to a certain amount, a replacement car whilst your car is being repaired or in the case of theft or total loss for up to 30 days or until the insurance company pays the claim. Most policies also include cover for windshield breakage, roadside repairs and towing.

Premiums:

The premiums vary significantly between the various insurance companies, and you should definitely shop around for comprehensive insurance as you can make significant savings on premiums. The main criteria, in principle, in determining the premiums are the age of the youngest driver, the value of the car, the claims record, and the security devices installed, but once these criteria have been taken into account, each insurance company relates to each car differently and makes its own determination as to the premium. All companies give a discount for not driving on Shabbat.

Anti-theft devices:

On the subject of security devices, again there is some degree of variation between the various insurance companies, and since the cost of some of the more advanced devices can run to 3,000 – 4,000 NIS, this is something that needs to be taken into account when selecting which insurance company to work with. Most companies offer significant discounts on premiums if you go for the more advanced security devices, whether in the form of a reduction in premium or in the form of actual cash participation in the cost of installing the anti-theft equipment.

Deductible:

The deductible payable on claims depends in most cases on the type of garage you use to repair your car. There are three types of garages: the insurance company-approved garages (musach hesder), and the garages which are approved by the importer of the car, or ordinary repair shops. If you take your car to an insurance company-approved garage you pay a deductible which is around 40% less than in the other type of garage (around 950 NIS instead of around 1,600 NIS).

Claims:

You pay the deductible amount directly to the garage, and the garage then settles the account with the insurance company. In the case of the other garages, you pay the bill in full and claim back from the insurance company. The standard of the repairs at the insurance company approved garages is reasonable but not outstanding. If your car is under warranty, you should think about taking it to an importer-recognized garage, so as not to risk the warranty becoming invalid.

In the case of cars bought on immigrant rights, settling the claim in the case of theft or total loss also involves going to the customs authority to get a release form. The insurance company pays out the full used value of the car including tax (less the deductible). The used value of the car is determined in accordance with the monthly price list for used cars ("Levy Yitzhak", after the name of the firm that publishes it). The book lists every single type of vehicle on the road in Israel, by model year, with its value.

Buying car insurance:

Sales of car insurance are done by two entities: insurance brokers and the "direct" insurance companies. The advantage of the insurance broker is that you can expect a high standard of service, especially in solving the "gray" areas and going into bat for you if you have a claim. A good broker would work typically with a number of insurance companies. Insurance bought through the "direct" insurance companies tends, at least in the first year, to be cheaper than going through a broker. However, there is considerable anecdotal evidence to suggest that the standard of service you can expect to receive is significantly lower. At the end of the day, it is service that counts, so that if you have a claim it is cleared with a minimum of tension and inconvenience.

This is a general survey of car insurance in Israel, and is by no means comprehensive. When buying car insurance you should go to a professional who can give you complete advice and obtain the best policy for you.

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Vehicle Insurance in Russia

Find out about the types of vehicle insurance available in Russia, how to make a claim and what the cover provides...

In order to drive any vehicle in Russia, a driver must have the minimum compulsory third-party liability insurance OSAGO (ОСАГО; Obyazatelnoe strahovanye avtograzhdanskoy otvetstvenosti / Обязательное страхование автогражданской ответственности), colloquially known as avtotsivilka (автоцивилка).

This policy is of quite limited coverage, so it is advisable to purchase additional insurance. For foreign drivers in Russia, it is recommended to take out the full 'autokasko' insurance, offered by all major insurance companies, which may also include road assistance.

If importing a vehicle, insurance can be arranged at the border when entering Russia.

OSAGO Insurance

The OSAGO policy must be carried at all times while driving. Together with the insurance contract and the policy paper, the insured driver receives a form called Notice About Accidents (Izveshchenyia o dorozhno-transportnom proizshestvii / Извещения о дорожно-транспортном происшествии – also known as the Izveshchenyie o DTP / Извещение о ДТП). In the event of an accident, it must be updated by the insured at the scene and submitted to the insurance company.

Documents needed for OSAGO insurance include:

• Proof of identity
• Vehicle registration document, or the technical passport of the car (PTS, ПТС; Pasport Transportnogo Sredstva / Паспорт Транспортного Средства)
• Driving licence

Other Types of Insurance

Some other types of policy available above the compulsory OSAGO insurance include:

• Comprehensive and Collision Insurance (CASCO, Strakhovanyie avtomobilya po CASCO / КАСКО, Страхование автомобиля по КАСКО) commonly referred to asautokasko (автокаско) or ‘fully comprehensive’ insurance
• Voluntary Civil Liability Insurance (Strakhovanyie grazhdanskoyi otvetstvenosti / Страхование гражданской ответственности) which increases the liability limit from the compulsory insurance contract
• Additional Equipment Insurance (Strakhovanyie dopolnitelnogo oborudvanyia / Страхование дополнительного оборудования) which covers any equipment installed in the car
• Driver and Passengers Insurance against Accidents (Strakhovanyie voditelya I pasazhirov ot neschastnogo sluchayia / Страхование водителя и пассажиров от несчастного случая)

The costs, duration and conditions of policies and agreements differ between insurance companies and for individual customers, cars and requirements in a policy. Most companies have a calculator on their website to work out approximate prices of cover and to compare services offered.

There are efforts to implement a bonus/malus system in OSAGO insurance, but it is not yet fully functional due to the lack of a unified accident reporting system among insurance companies. There is now a move towards this with a progressive policy in place to implement the system and the Union of Auto-Insurers is starting to collect information in a common database.

Making a Claim

In order to make a claim after an accident, the insured (or proxy) must present to the insurance company the documents listed below within 15 days. The usual term of processing a claim by the insurer is 30 days. Details of how and where repairs are assessed and carried out, the possibility of a courtesy car and how claims are processed can vary between individual policies and different insurance companies, so should be confirmed when signing up for a policy.

Items required to file a claim after an accident

• Claim form
• ID of the driver
• Driving licence of the driver
• Vehicle registration document, or the technical passport of the car (PTS, ПТС; Pasport Transportnogo Sredstva / Паспорт Транспортного Средства)
• Power of attorney (if applicable)
• Statement about the accident (written by the traffic police officer at the scene of the accident)
• Copy of the statement about administrative violation of the law (stamped by the traffic police)
• Notice About Accidents form with information about damages to the car, which is given together with the OSAGO insurance papers
• Notice No.154 (if applicable)with information about the damage to the vehicle(s) and indicating the guilty party (this is provided by the traffic police officer fi one was present at the accident)

Breakdown and Recovery in Russia

Roadside assistance (Pomoshch na dorogakh / Помощь на дорогах) and recovery services are available as part of some insurance packages or separately from the same or different companies, some of which are listed below.

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How to Negotiate Personal Injury Lawyer Fees

Are you considering filing a personal injury lawsuit against another party? Are you wondering how much money you might be awarded? Don't forget to factor in attorneys fees into the equation.  By negotiating a lower attorney settlement fee, you can easily save thousands of dollars.

1. Determine if you actually have a strong case: 
Were there witnesses to the injury? Hospital records? A police report? If you feel that you were wronged and you have evidence to support it, it is worth pursuing a legal consultation.

2. Research the personal injury law firms in your area.  
There are many online websites that offer reviews of attorneys.  You can also contact the State Bar Association to research any complaints against a particular lawyer.  The Better Business Bureau is another good source of information.

3. After forming a list of reputable lawyers, it is time to interview them.  
Talk with multiple law firms.  This is the step that is worth taking your time with.  Many law firms offer free initial consultations to ascertain if your case is legitimate and how much the case might be worth.  Ask questions and take notes.  Ask about their previous court victories.  What is their success rate? Try to develop the sense of the integrity of the attorney.  You want to work with someone with whom you feel comfortable and are confident in.

4. After meeting with the law firms, compare notes. 
Are their general opinions similar? Do you have a good chance of winning your case?  Most importantly, what is the consensus on the amount of damages to ask for?  What is the payment arrangement? - usually contingency or "no-win, no-fee" arrangements are best.

5. Select at least two law firms that have a strong track record. 
This when the real negotiation begins, especially if you have a strong case.  Lawyer fees in a contingency agreement lawsuit usually range from 25% - 40% of the settlement amount.  This is a wide variation.  In a large legal settlement, just a few percentage points of commission can translate into thousands of dollars.  

6. Contact law firm #1 and inform them that you are considering working with them, but you want their lowest commission offer.
Do the same with law firm #2.  Don't be afraid to mention that you are talking with multiple law firms in order to get the best deal.

7. Compare the offers.  

If you have a strong level of confidence in each law firm, then go with the lowest offer.  If your case is expected to be worth over $250,000, shoot for a 20 - 25% commission.  Most law firms will agree to work the case for that amount of commission.

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Tips for Choosing an Auto Accident Attorney

Let’s face it—despite our best efforts to drive safely and follow the speed limit, automobile accidents happen. Whether driving a car, truck or motorcycle, or whether or not you’re at fault, it’s wise to hire an attorney to protect yourself in the legal proceedings that will undoubtedly follow a serious wreck.

Even if you’re not at fault, you may find it difficult to win your case without legal representation, particularly if the other party has an accident attorney. A well-versed personal injury lawyer’s knowledge also will prove beneficial when it comes to a settlement with the insurance company. An attorney will, of course, charge for their services; however, some lawyers will not require payment until after the case is settled. In any case, you likely will discover the money you pay a professional will be well worth the cost once you learn how much he or she can claim for you regarding insurance company and other-party compensation. If you’ve been involved in an automobile accident, here are a couple of initial steps to take when it comes to finding the right attorney.

 Hire a competent lawyer who specializes in personal injury. Take time to do some research and find a lawyer who deals with personal injury cases. You may already have someone in mind with whom you’ve had prior experience or heard about through personal references. If you’re unsure, visit some websites or check out advertisements. Find an attorney located in the general jurisdiction of where the wreck occurred, as that attorney will be familiar with the state and area laws that are applicable to the local court’s proceedings. By choosing to hire a skilled attorney, you’re ensuring your case will be handled properly; that you’ll be made fully aware of your rights and responsibilities. You’ll also have a better shot at recovering all your money from the cost of the accident, expenses and injuries by hiring a capable auto accident attorney.

Find a lawyer you can depend on Try and find an attorney you trust will do right by you. Does he or she answer your questions? If not, look elsewhere. Attorneys who discourage or avoid your questions, or fail to answer them in a straightforward way, may lack experience to handle your case. Finding a lawyer with experience in handling personal injury and auto accident cases is important. Has the attorney ever won a large verdict or settlement? Will he or she be working personally on your case? If he or she dodges those questions and others, or if the answer to either of those questions is no, look elsewhere to find the right attorney to represent you.

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How Long Does A DUI Affect Your Auto Insurance Rate?

When it comes to auto insurance premiums, we all have some control over how rates can affect us. You have the opportunity to assume more of the risk with higher deductibles, just carrying liability coverage on older cars, getting discounts for not receiving speeding tickets, in general just being an overall good driver.

However, for some avoiding such incidences seem to be difficult so if this applies to you don't freight, there is still hope for obtaining insurance.

With all the things that can effect your insurance premium getting a DUI has got to be one of the toughest things that can follow you for a long time. We're talking several years to come. This is because you're now classified as a "high Risk" driver. That puts you into a whole new category.

So to the question of how long does a DUI affect your auto insurance rate? For approximately 3 years per incident. Unfortunately being classified as a high risk driver you now bare the mandatory requirement that you carry what's referred to as an SR22 insurance policy for 3 years.

Do you know what an SR22 insurance policy is? Well if you don't know, it's a policy reserved for DUI drivers when they get their drivers license back. This is the highest risk policy an auto insurance company can cover on an individual. Be careful to watch for notifications from your current insurance carrier because some major carriers will drop you as a customer after a DUI conviction once placed on your driving record. This is part because some carrier won't insure "High Risk" policies to drivers with that status.

However, you still need auto insurance coverage right? And you still can but at about 2-3x the regular rate for high risk or DUI insurance coverage. Typically in the auto insurance industry to may need to seek out smaller companies for that kind of insurance. You can still get an affordable rate though; you just may have to do more shopping around to compare rates and services than most.

Unfortunately, when it comes to the regulating these high risk SR22 insurance policies there really are none in place for what insurance carriers can charge for DUI Insurance. So you're practically at their mercy. Companies still want your business and you can find coverage if you get dropped from your current carrier. Even if you didn't get dropped, expect your premium to drastically increase. Just take the opportunity to compare the rate.
Find yourself the best deals on high risk auto insurance by comparison shopping from quality agents in your area. You can also ask your carrier for assistance for DUI Laws in your area as well as DUI Lawyers or just research and locate ones on your own. Just get reliable information to protect yourself. That doesn't cost you anything but time and you never know you just might find a lower rate. Just don't drink and drive and you can avoid all of this matter?                          

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How To Find A Best Accident Lawyer Or Personal Injury Law Firms Colorado

If, by misfortune, you need to hire services of accident lawyer, it is important to contact and hire an efficient lawyer. If you are living in Colorado, there are many personal injury law firms Colorado that offer services of car crash lawyers, Colorado Accident lawyer and more. When looking for an accident lawyer, having a bit of legal knowledge would help. When seeking legal help, having a information about that area of practice would be a great help. Read below to get some idea about how to search a lawyer.

What kind of attorney do you need?
If you have been through an accident; car accident, slip-and-fall or a spinal cord injury – you need a lawyer to ensure that your rights are protected. Finding an accident lawyer is the first step in this direction as you know you need professional services. There are few things you need to know when you are looking for a Colorado Accident Lawyer who can treat your professionally.  Since there are different types of accident lawyers who are expert at different areas of practices, you should hire a lawyer who qualifies to fight for you.
In the legal profession, accident lawyers are known as the personal injury lawyer. These kinds of lawyers are well aware of rights of people who are hurt physically or emotionally. Moreover, they can help those whose reputation is harmed. They know the laws which cover these incidents. Finding a right lawyer to help you out of crisis is a tricky matter.

Attorney Colorado or law firms Colorado have their websites providing all the information about them. Firms like McDowell and Laybourne & Rodemer,LLC have an interesting winning record and experiences for variety of cases such as accident cases, including plane crashes, bus accidents, slip-and-fall incidents, construction site accidents and truck accidents.
Choosing a right Colorado accident lawyer is a decision of great importance as your coming life may depends upon the judgment you get in the court of law. The most important factors to consider, while selecting attorney's experience, integrity and the way of communicating with his or her clients.

Integrity and personality of the lawyer is crucial as he or she needs to communicate with their client in a way to pacify them of any resentment they may have against the other party and make them focus on the fair justice.

Be careful while finding a lawyer
While looking for a lawyer, be careful and cautious. Do not settle for the first one you see in your phonebook or yellow pages. Be picky! You are not just looking for any lawyer. Rather you are looking for lawyers who are experienced and expert in the type of accidents you are involved in. For instance, if you are involved in a car crash, you need the services of Car Crash Lawyers. Furthermore, you should contact a lawyer who has a record of winning cases.

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