Having an auto insurance policy can protect people from unaffordable costs if they experience a car accident in New York. However, consumers can find ways to take advantage of their coverage and make money off of their insurance company.
While most people view this type of behavior as harmless, it is both unfair and unethical. Most insurance companies have rigorous processes to prevent such outcomes but may need to defend their actions if dissatisfied consumers take legal action.
Exaggerating the story
An accident happened. A policyholder has undeniable proof. However, the facts of their story do not match other evidence collected. For example, property damage, or lack thereof, might not match the description of the accident. Sometimes people will exaggerate their story to make it sound more paralyzing than it actually was. They may hope that such a strategy will net them a larger compensation.
Insurance companies should take the time to conduct their own investigation into incidents involving their policyholders. According to CNBC, auto accidents may cause a person’s premium to rise, especially if they were the at-fault party. Because of this, some consumers may lie about what really happened in hopes of preventing such repercussions. An independent investigation can provide clarification and confidence for insurance companies.
Prolonging treatment
Another strategy people might use to take advantage of their auto insurance company is to prolong their medical treatment. U.S. News reports that the average cost people pay for car insurance is over $1,500. To offset these costs, injured policyholders might continue seeking medical treatment past what they actually need after a car accident. They may complain of phantom pain in hopes to boost the amount the insurance company will compensate for injuries.
Just as consumers have rights, insurance companies also have rights. In cases of falsified claims, an insurance company will need to collaborate with its legal team to defend its company and retain its image.