Honesty is the best policy”. Is this still applicable in this day and age? Parents try to integrate this to their children. As citizens of the country this is what we want from the government. As an individual this is what we expect from other people. What happened then?


A 2003 survey conducted by Accenture Ltd., a consulting firm, showed that one out of four Americans thinks that it is ok to defraud insurers. In 2001, Progressive Insurance said that one out of 10 Americans would commit insurance fraud if they knew they could get away with it and three out of 10 Americans would not report insurance scams committed by someone they know.


Nowadays, PENNSYLVANIA AUTO INSURANCE fraud is becoming rampant. This type of fraud means that an individual is deceiving an insurance company about a claim involving their vehicle. It can be by giving out misleading information or providing false documentation to support the said claim.


According to PA Insurance Fraud Prevention Authority, more than 1,000 suspected fraud complaints were received in 2008 alone. It also listed majority of PENNSYLVANIA AUTO INSURANCE fraud arrests. These include staged auto accidents and false claims of injury, false reports of stolen vehicles, false claims that an accident happened after a policy or coverage was purchased, false claims for a previously existing damage and claimants who concealed that a person excluded from coverage by their policy was driving at the time of the accident.


Did you know that PENNSYLVANIA AUTO INSURANCE fraud is considered a criminal act? Before you think of making any dishonest claims to take advantage of your insurance premiums, you might want to know first what are the possible consequences you are about to face. If you are a violator, you must be ready to spend about seven years in prison and about $15‚000 in fines. In addition to this of course are the other associated expenses such as court costs and legal fees. Data from the Rand Institute for Civil Justice shows that the fraud involving motor vehicles nationally costs an estimated $58 billion a year. Another study also estimated that this crime adds as much as $200 to the average annual cost of auto insurance. And if you are caught and found guilty of this fraud you will have the stigmas and restrictions of being a convicted felon to carry for life.


Two simple ways to avoid facing situations where there are chances for you to commit auto insurance fraud are first‚ make sure your insurance policies are updated for each motor vehicle you own‚ and that these policies include at least the basic types of coverage required by PA law. Second‚ make sure you understand each policy and its coverage. You may want to ask help from your insurance representative regarding this.


Don’t give in to short term benefits dishonesty can give you. If you got away with it in the past, it doesn’t mean you can still get away with it today. There is always a first time in everything.