Auto Insurer to Crack Down on Crash Ring

Posted in Auto Insurance , Auto Insurance Claims

May 4th, 2010

Auto insurer Direct General Insurance Company has taken part in an eight-month investigation to help dismantle an organized “crash ring” with law enforcement agencies in the Central Florida area.

With the dramatic rise of auto insurance fraud in Tampa, Fla. and surrounding areas, many organizations and companies have successfully come together to stop the crime.

“Operation Crash for Cash” Has Resulted in More than 50 Arrest

The Hillsborough County Sheriff’s Office, along with the Florida Department of Insurance Fraud, the National Insurance Crime Bureau (NICB), Direct General and other car insurance companies have come together to form Operation Crash for Cash. This operation was put together to pinpoint the individuals and business taking part in auto insurance fraud so that it can put a stop to the crime in the area once and for all.

So far, the operation has had a good amount of success making more than 50 arrests as a result of an ongoing probe that resulted from the investigation of four medical clinics. In addition, charges have been filed for crimes ranging from racketeering and staging auto accidents to auto insurance fraud.

Auto Insurance Fraud Increases Rates

In addition to the many reasons that auto insurance rates could increase across the board, fraud is among the top reasons. In Florida, in particular, car insurance companies are forced to charge higher premiums and impose tighter underwriting guidelines as a result of losses due to fraud. So by cracking down on the act, everyone benefits.

It is no secret that criminals, and even law-abiding citizens, are getting in on fraud because they feel that it is a justifiable crime. But no matter what, fraud is a crime and one you should avoid. If you’re looking for ways to cut corners and lower your auto insurance rates, here are some simple and legitimate ways to do it.