Staged car crashes !

Insurance rorts involving cars have been with us since the automobile was invented.   The problem is that with older cars  the insurance coverage is usually greater than the vehicle is actually worth, providing an incentive for the owner to cause it's destruction and claim the money.

Police and insurance company investigators have uncovered a novel scam that has taken car fraud up-market.    It seems that a Maserati Quattroporte had the misfortune to be involved in eight separate accidents in eleven months - and each time it was the other vehicle that was at fault.   Consequently, the company insuring those other vehicles received claims for $ 260,000 of damage.

The investigation discovered that a similar fate had befallen another Maserati and a Mercedes SLK.  These high value vehicles had totted up eighteen claims in twelve months - and sustained an incredible half a million dollars damage.

The investigation examined the " law of probabilities " - and found it wanting !    It seems that these three high priced vehicles were owned by the same man - and he was also the owner of the smash repair business to which they had been taken for repair.

There have been arrests and it seems likely that most or all of these supposed " crashes " were fictional.  The offending cars that supposedly caused the damage were carefully covered by insurance held by a range of insurance companies and those presenting their claim were part of the scam.    The trigger point that caused this racket to come undone - was sheer greed.    The perpetrators went to the money well too often !

In recent years car insurance has become an ultra competitive business.   A large number of insurance companies are advertising heavily for new business and low premiums seem to be the main inducement.  Some even claim to beat any other quote - and offer the enquirer a bonus of a hundred dollars if they fail.
It is obvious that fraudulent claims must have an impact on the cost of car insurance.

In past years, careful drivers were rewarded with what was termed a " No claim bonus ".   A hefty discount applied to annual premiums for those who managed to avoid making claims and that seems to be missing from today's advertising offers.   Insurance companies still reward those with a crash free history but we don't seem to hear much about no claim bonuses when they are seeking broad spectrum new customers.

Insurance always was - and always will be - a trap for the unwary.   The wise will examine the policy offer line by line, and take the trouble to understand exactly what is meant by the terminology used.   A cheap price is no bargain - if it fails to cover the full spectrum of eventualities we expect !