For the Lowest Auto Insurance Rates, Go Insurance Rates

High car insurance rates are driven by a number of factors, with one of the biggest being fraud. Auto insurance fraud happens all the time, and in a variety of under-handed ways. The good news is that there are ways to protect yourself from being one of its victims.

Fraud is a Big Business

According to the Coalition Against Insurance Fraud, in 2007 fraud accounted for 11 percent of all bodily injury claims alone, and added between $5 billion and $7 billion to the insurance industrys payouts.

Those fraudulent costs are then passed on to all consumers in the form of higher auto insurance premiums. Underwriting problems are also a big problem, costing the insurance industry $15.9 billion in 2009. Fraud, in the form of under-reporting of true miles driven or where the car is actually driven (as opposed to where it is registered) is a significant portion of that.

Fraud Type: Staged Accidents

One popular auto insurance fraud tactic that everyone should be on the lookout for is the staged accident.

According to Insurancefraud.org, this is a shockingly common auto insurance scam that is perpetrated in a variety of ways. One common tactic, dubbed the swoop and squat, is for a car to suddenly break in front of another, causing the second car to rear end it. The first car can often be carrying several people, all of whom will claim neck and back injuries.

In order to avoid being the victim of a staged accident, always be on the lookout for potential scams, and of course, never tailgate.

Fraud Type: Stolen Cars That Weren't Stolen

Another popular auto insurance scam is less malicious, but still very costly to all auto insurance consumers.

This is the act of claiming that a car was stolen, but in truth the owner disposed of it by dumping it in a lake, or paying someone to set it on fire and destroy it. Sadly, this tactic is on the rise in a bad economy because many people have lost their jobs and can no longer afford to make their car payments. Nonetheless, unless the fraud is uncovered car insurers pay for these "stolen" cars, and then those costs are passed on to everyone else as high auto insurance rates.

In order to avoid being a victim of auto insurance fraud, pay close attention to driving conditions at all times, and always drive slowly enough to break in time. If you do find yourself in a suspicious accident, be sure to let your car insurance provider know immediately.

A recent report from KIAH-TV in Houston explored why fewer teens have been getting their drivers licenses, and the possible role of their social networking activity. The report looked at the decreased desire for teens to interact in person as long as there were social networking sites like Facebook to turn to for interaction.

Has our society changed that much that teens are no longer interested in getting their drivers licenses because they can communicate online? And if so, how does this affect auto insurance rates?

Social Networking Has Affected Face-to-Face Socializing

There is no doubt that spending time on social media has had an effect on the amount of time people spend with each other in person. But no one could have imagined that it would have the same effect on teenagers.

According to a 2008 MacArthur Foundation study, teens usually have a full-time intimate community with whom they communicate in an always-on mode via mobile phones and instant messaging. The same goes for social networking sites like Facebook, Myspace and Twitter, which all offer mobile capabilities, allowing teens to interact 24/7.

Of the teens observed in the MacArthur study, some were cited as saying that they couldnt live without their access to social networking sites. Some even went as far as to say they were obsessed, which according to the study, was not a reason for parents to be alarmed. The desire to spend time interacting online rather than face to face has somewhat become normal and isnt viewed as unhealthy.

Driving No Longer a Necessity

In the KIAH-TV report, it was referenced that more teens are taking longer to acquire their drivers licenses due to a lack of necessity in interacting with friends in person. As found in a study by the Department of Transportation, this appears to be true.

According to the study, nearly 30 percent of 16-year-olds nationwide got their licenses in 2008, down from 45 percent in 1998. After interviewing some students, the report revealed that many teens and young adults are simply not interested in driving because Facebook made it so easy to connect with friends.

Socializing Media Good for Parents And Auto Insurance

The great news about many teens deciding to forgo driving in favor of social media is that car insurance quotes are sure to be lower than ever before. With a parent not having to add their teens to their policies, which undoubtedly raises rates, parents can experience the benefits of a great driving record without having to suffer the punishment of high car insurance rates for their teens.

There is no doubt that having a teenager on the road not only increases auto insurance rates, but could create a greater hazard for all drivers on the road. So if they are spending more time hanging out with friends online than yearning to drive to see them then the effect social media is having on the auto insurance world is actually a good one.

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