Since the start of the current recession there has been an abnormal increase in the number or write-offs and accidents that lead to write-offs. These incidences seem to only happen during times of recession and economic instability. For many years statisticians have often noticed this trend but often wonder what the gelling factor is that combines these two very separate events together.
The confusing thing is that there is actually no logical or even physical correlation between the increased write-offs and accidents with the slow economic times. On the surface of things it would seem that this is purely a random coincidence at best. However after much prying and research insurance companies have determined that it is actually due to the despicable actions of a few car insurance policy holders.
The unfortunate truth is that many people who are in financial distress do turn to less than appropriate methods to try settle their dues. Some people turn to taking advantage of insurance companies and other criminal acts just to get by in these distressing financial times. Although it is despicable it is a reality that we all have to accept this and plan forward.
There are a number of desperate motorist that actively get themselves into accidents by ramming their cars into other cars or even stationary things like fire hydrants in the hopes that they will inflict enough damage on the car so that the insurance companies will be forced to write-off the car and issue the individual a settlement check for the car's value. The sad fact is that most of these people do not properly think through these actions and end up on the losing end of the battle.
Some other individuals have even resorted to torching their cars or even reporting that it was stolen simply to get their car insurance claims come through better. These criminal acts are very obviously against the law and if even the slightest issue arises the insurance company is simply not going to pay your claims. There simply is no situation where you should ever be resorting to insurance fraud to either get a cash benefit or to get rid of you car.
If you are in a financial pit and can't seem to find a way out, having a car that you feel is hard to sell while still paying of your loan payment can be a very difficult pill to swallow. This is on the backdrop of one of the most severe recessionary times ever. It is no wander that some people start thinking about how they can make use of their car insurance coverage in odd ways. The fact is if you can't afford you car anymore, you should sell it. Once sold you can restructure your loan payment so ease your cash flow and also not need to contribute to your car insurance any longer.
At this stage you might be asking why this has any relevance to you. It does however impact you as a car insurance policy holder as car insurance companies will be faced with increased risk of these types of behavior from less than honest car insurance holders in your same insurance pool. The extra risk means that other honest car insurance policy holders will have to foot the bill thus affecting you with higher premiums. This doesn't only happen to one insurance company rather it happens to all in these recessionary times.
The net affect of this is that premiums will go up, even if you have been the best car insurance customer around, prompt with premium payments and never claiming a thing, you too will be affected by this trend. There really isn't anything that you can do about it other than to understand why there might be an increase in premiums in these recessionary periods.
The confusing thing is that there is actually no logical or even physical correlation between the increased write-offs and accidents with the slow economic times. On the surface of things it would seem that this is purely a random coincidence at best. However after much prying and research insurance companies have determined that it is actually due to the despicable actions of a few car insurance policy holders.
The unfortunate truth is that many people who are in financial distress do turn to less than appropriate methods to try settle their dues. Some people turn to taking advantage of insurance companies and other criminal acts just to get by in these distressing financial times. Although it is despicable it is a reality that we all have to accept this and plan forward.
There are a number of desperate motorist that actively get themselves into accidents by ramming their cars into other cars or even stationary things like fire hydrants in the hopes that they will inflict enough damage on the car so that the insurance companies will be forced to write-off the car and issue the individual a settlement check for the car's value. The sad fact is that most of these people do not properly think through these actions and end up on the losing end of the battle.
Some other individuals have even resorted to torching their cars or even reporting that it was stolen simply to get their car insurance claims come through better. These criminal acts are very obviously against the law and if even the slightest issue arises the insurance company is simply not going to pay your claims. There simply is no situation where you should ever be resorting to insurance fraud to either get a cash benefit or to get rid of you car.
If you are in a financial pit and can't seem to find a way out, having a car that you feel is hard to sell while still paying of your loan payment can be a very difficult pill to swallow. This is on the backdrop of one of the most severe recessionary times ever. It is no wander that some people start thinking about how they can make use of their car insurance coverage in odd ways. The fact is if you can't afford you car anymore, you should sell it. Once sold you can restructure your loan payment so ease your cash flow and also not need to contribute to your car insurance any longer.
At this stage you might be asking why this has any relevance to you. It does however impact you as a car insurance policy holder as car insurance companies will be faced with increased risk of these types of behavior from less than honest car insurance holders in your same insurance pool. The extra risk means that other honest car insurance policy holders will have to foot the bill thus affecting you with higher premiums. This doesn't only happen to one insurance company rather it happens to all in these recessionary times.
The net affect of this is that premiums will go up, even if you have been the best car insurance customer around, prompt with premium payments and never claiming a thing, you too will be affected by this trend. There really isn't anything that you can do about it other than to understand why there might be an increase in premiums in these recessionary periods.
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