Car Theft and Insurance Fraud

Obviously, car theft is generally understood to refer to the stealing of automobiles, buses, motorcycles, snowmobiles, trucks, trailers and the like; but not to aircraft, boats, bulldozers, and spacecraft. And though you might not think it, car theft is a crime that leads to the greatest number of fraudulent insurance claims than anything else.

On their website, the National Insurance Crime Bureau (NICB) states that, "In the past, vehicle thieves were content stealing cars and trucks the old fashioned way, such as forcing entry and circumventing ignitions. Today, they have new scams for stealing vehicles that are much more difficult to detect. Criminals use fraudulent techniques to steal cars that do not involve smashing windows, disconnecting alarm systems or racing from the scene of a crime."

In almost all jurisdictions, car theft is punishable as a felony owing to the emotional and economic distress it causes to the victim. But what if a car owner is the perpetrator of the fraud rather than a victim? What if the car is never really stolen?

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Discount Car Insurance

You spent a great deal of time shopping around to find the best deal on your automobile. So it only makes sense to explore tactics and tips to get discount car insurance and optimize your coverage. You may think it's impossible to get quality coverage while paying less for it – essentially getting something for nothing – but you'd be surprised at how the application of a few common sense (if at first counterintuitive-seeming) principles can indeed help you reach discount car insurance nirvana.

Principle #1: You will pay less if you have good credit.
Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. For this reason, almost all insurers will pull your credit report and analyze it. This will demonstrate whether you pay your bills on time and will reveal if you have had any run-ins with creditors. Ideally, you want to look as stable as possible – so if you pay late, frequently open and close accounts, and have a low FICO score, you will be a higher risk driver. All this info will be used to create something called your "insurance risk score," which your carrier will use to determine your rate.

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Gap Insurance

Everyone has heard the old mantra about cars losing a large percentage of their value as soon as they are driven off the lot. Most of us are willing to accept that fact along with five or more years of monthly payments to get the car we love. But what happens if the car we love is totaled in an accident soon after we purchase it?

Understanding the "Gap" in Gap Insurance
If your vehicle is totaled in an accident, your auto insurance policy will pay the actual cash value (ACV) of the car at the time of the loss. What's ACV, you ask? ACV is equal to the cost to replace the vehicle minus depreciation. Here's the question you're probably most concerned about: Is the ACV of the vehicle the same as what you still owe the lender?

Not necessarily. For example, consider a vehicle that has three years of payments equaling $15,000 left on the loan. Due to depreciation, at the time of an accident, the vehicle is only worth $10,000. The auto insurance policy pays the ACV at the time of the loss. As a result, a "gap" of $5,000 has been created and the value of gap insurance is clear.

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The Lowdown on Import Car Insurance

Deciding what kind of car to buy involves many factors; performance, reputation, size, and personal style are just some of them. In the end, these factors add up to one thing: what car you feel most comfortable buying. One thing many buyers don't consider is the price of car insurance—especially import car insurance. To find the coverage you're comfortable with for an imported car, you may want to look into insurance before you make a purchase. On the surface, import car insurance is the same as domestic car insurance. However, there are some distinctions that might drive up your premium.

Cost Factors
At the outset of your search for import car insurance, you will be the determining factor for the cost of your annual premium. Your age, gender, home city, education level, are all part of a profile insurers use to determine an approximate premium. Perhaps even more important are your driving record, credit history, and insurance history. If you receive a traffic citation, adverse credit mark, or let your insurance lapse for any period, you can expect your premiums to rise. How much you drive—annual mileage—is obviously important as well; the less time on the road, the less chance of an accident. Where insurance for imports begins to skew from many domestic cars is the cost of the car itself—both its value and the cost of repairs.

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