Buying insurance AFTER a vehicle be stolen / within an quirk?
We all know that collision and comprehensive coverages demand elevated premiums these days. I also know that if your vehicle is financed and you don't provide a lender with mediocre insurance or your insurance is expired or whatever, such lenders can insure the collateral themselves, EVEN AFTER a loss has occured - burglary, accident, fire, etc.
My question is: Why couldn't I do duplicate? That is, wait for an accident to occur or your vehicle to be stolen, AND THEN purchase insurance, wait a period of time, and record a claim.
I realize that you'd have a hard time proving an coincidence occured while your policy was active; police probably requirement to make an on site report, appraisers can detect the age of the damage and other shortcomings. But what in the region of THEFT? If your vehicle is stolen and you do not file a police report, then buy coverage, linger some time, report the theft as it just happen and then file a claim? What are your likelihood?
I'd appreciate pragmatic responses, w/o ethical aroma.
Answers:
I do not know of any insurance company that sells theft insurance one and only. But the biggest problem I see with your condition to purchase the insurance after the lost is
1. Many insurance companies want to view the vehicle since issuing a policy. Especially it is not currently insured.
2. What do you do if;
a. The car is recovered burned out, or stripped before you own time to purchase the insurance.
b. You purchase the insurance, not being aware of the recovery and after the insurance discovers that you committed fraud.
The same concept applies here as do the other situations. If you do not promptly report a theft to the authorities, any insurance company will make higher a red flag, especially if your policy is fairly new.
Not to mention, logically, that doing so is insurance fraud and is punishable by real time behind steel bar.
I guess it could work, but if you bought insurance and immediately (or even very soon after) reported it stolen, the insurance company would probably suspect what you have done. They might send out a private investigator to interview your neighbors and friends (and you of course) about adjectives the details, and unless you were very clever and lucky they extremely likely be able to prove you lied.
Its purely not worth going to jail over, the insurance companies aren't stupid and your not the first person to ever deem of this.
it's call fraud, and depending on the amount, could be considered a felony. your intent is to defraud the insurance company
Insurance fraud can and is committed. More often than most people would believe. However, insurance companies are not dumb. They hold teams of investigators that review these claims. There are databases of information regarding every claim that is to say filed. You might get away beside it once or even twice. Your name would start appearing on a watch schedule. And eventually something would happen that would cause you to find busted. Source(s): Me, and my years of busting guys like you.
Well you would be committing a crime but its a very common one that individuals do get away with. The insurance company will grill you when they distribute out their rep, so if you can keep a straight face next you might get away with it too.
I know someone who back into a tree by accident, then parked her saloon in a WalMart parking lot and called the police and lied that it be damaged in the lot, jam-packed out the police report and got her insurance money.
If I was the adjuster I'd clearly want to know why you purchased the sports car X months or years ago, then waited to obtain insurance, then got it stolen X days then...but hey, it might work.
I't called fraud, and you can move about to jail. That's also why everybody else's insurance rates go up. Thanks buddy.
too risky. you have a vehicle, it gets stolen on Monday January 1st. You buy coverage on January 2nd and later claim the car was stolen on January 10th within hopes of collecting the insurance money.
HOWEVER ....
when you purchase the insurance on the 2nd, you are attesting that you have the vehicle in your possession. Since you don't,. you enjoy lied - in this case, it's call "insurance fraud" and you will go to jail
AND THEN ....
when you database a stolen vehicle report on the 10th, one of the questions the cops will ask is "when did you last drive the car/see the coup¨¦?" You will have to lie roughly speaking the dates, which in this shield will be called "filing a false police report" ... a entry that policemen seem to frown on. They probably can;t send you to top-security prison for this, but it certainly will help the insurance company contained by their fraud case against you.
SO ....
I guess you would have a fortune of pulling this off, but the risks - jail time and huge fines - are too great contained by relation to the small amount of insurance $$ you would get by scamming the insurance company. Source(s): former insurance agent
Well, the lenders have a "blanket policy" in place, it ONLY covers the amount of the loan.
Every month, they distribute in a "reporting form" to list the vehicle they want covered. That's kind of deceptive, because they enjoy until 45 days AFTER the last day of the month, to take the list in to their insurer.
Anyway. You can't do one and the same, because you don't have access to a personal "reporting form". Ford Credit, for example, will have approximately 100,000 cars insured contained by any given month (at about 10X the cost, btw, each, of YOUR collision coverage). The with the sole purpose question is, which 100,000.
So they pay MASSIVE premiums (which they divide up and overrun along to the lendee), and part of the privledge of doing that lets them enjoy some time flexibility with notifying teh company.
If YOU Paid hundreds of thousands of dollars a month for insurance, you could do it, too. The item is, the insurance company needs to take within more than it pays out, or it goes out of business.
So when you're talking just about insuring 100,000 cars, at $100 a pop for a month, and ONLY paying off the loan balance, the insurance company can afford to discharge a couple loan balances for the 5 - 10 cars that get added on beside the next month's reporting form, and still make money. ESPECIALLY because, the owner of the motor is still on the hook for the full loan amount!! It is STILL collectable, even if the loan was paid bad by another insurer. Source(s): agent, 21+ years
well, first of all, contained by order to purchase comp or collision on a vehicle you need to hold the vehicle inspected. and if you show up at the agency on a bike they will make you sign something saying you will bring the vehicle hindmost in 24 hours or no coverage will exist. so, you get fund on your bike and get home and your car is stolen. guess what? you never have the vehicle inspected so, no coverage!
what your talking about is auto insurance fraud, and once you seize caught your in trouble, big time, they hire bull dog laywers, you think they will consent to you get off?
not to mention if you evolve to get away with anything approaching this, guess whos paying your claim? ME, and your mom, and your friends and your country.
When a new business policy is written the vehicle should be inspected by an agent. It helps prevent fraud. If they estimate you are lying they will investigate, investigate, investigate. The police will also investigate, investigate, investigate since you would be filing a false report
If you already have an insured vehl and this is a newly acquire car then you would be covered as if this be a temp or substitute vehl. You would have to have comp on your current vehl. There is a grace time between the time of your purchase of a new vehl and the time you need to report it to your insurance company.
If i.e. not the case and you didn't have any policies within force and you simply bought a vehl (most of the time they make you prove insurance before you drive it rotten the lot) and didn't have any coverage anywhere you would be looking at fraud. You may also have some sort of a grace time depending on the state that you live in to a newly acquire car.
Related Questions:
My question is: Why couldn't I do duplicate? That is, wait for an accident to occur or your vehicle to be stolen, AND THEN purchase insurance, wait a period of time, and record a claim.
I realize that you'd have a hard time proving an coincidence occured while your policy was active; police probably requirement to make an on site report, appraisers can detect the age of the damage and other shortcomings. But what in the region of THEFT? If your vehicle is stolen and you do not file a police report, then buy coverage, linger some time, report the theft as it just happen and then file a claim? What are your likelihood?
I'd appreciate pragmatic responses, w/o ethical aroma.
Answers:
I do not know of any insurance company that sells theft insurance one and only. But the biggest problem I see with your condition to purchase the insurance after the lost is
1. Many insurance companies want to view the vehicle since issuing a policy. Especially it is not currently insured.
2. What do you do if;
a. The car is recovered burned out, or stripped before you own time to purchase the insurance.
b. You purchase the insurance, not being aware of the recovery and after the insurance discovers that you committed fraud.
The same concept applies here as do the other situations. If you do not promptly report a theft to the authorities, any insurance company will make higher a red flag, especially if your policy is fairly new.
Not to mention, logically, that doing so is insurance fraud and is punishable by real time behind steel bar.
I guess it could work, but if you bought insurance and immediately (or even very soon after) reported it stolen, the insurance company would probably suspect what you have done. They might send out a private investigator to interview your neighbors and friends (and you of course) about adjectives the details, and unless you were very clever and lucky they extremely likely be able to prove you lied.
Its purely not worth going to jail over, the insurance companies aren't stupid and your not the first person to ever deem of this.
it's call fraud, and depending on the amount, could be considered a felony. your intent is to defraud the insurance company
Insurance fraud can and is committed. More often than most people would believe. However, insurance companies are not dumb. They hold teams of investigators that review these claims. There are databases of information regarding every claim that is to say filed. You might get away beside it once or even twice. Your name would start appearing on a watch schedule. And eventually something would happen that would cause you to find busted. Source(s): Me, and my years of busting guys like you.
Well you would be committing a crime but its a very common one that individuals do get away with. The insurance company will grill you when they distribute out their rep, so if you can keep a straight face next you might get away with it too.
I know someone who back into a tree by accident, then parked her saloon in a WalMart parking lot and called the police and lied that it be damaged in the lot, jam-packed out the police report and got her insurance money.
If I was the adjuster I'd clearly want to know why you purchased the sports car X months or years ago, then waited to obtain insurance, then got it stolen X days then...but hey, it might work.
I't called fraud, and you can move about to jail. That's also why everybody else's insurance rates go up. Thanks buddy.
too risky. you have a vehicle, it gets stolen on Monday January 1st. You buy coverage on January 2nd and later claim the car was stolen on January 10th within hopes of collecting the insurance money.
HOWEVER ....
when you purchase the insurance on the 2nd, you are attesting that you have the vehicle in your possession. Since you don't,. you enjoy lied - in this case, it's call "insurance fraud" and you will go to jail
AND THEN ....
when you database a stolen vehicle report on the 10th, one of the questions the cops will ask is "when did you last drive the car/see the coup¨¦?" You will have to lie roughly speaking the dates, which in this shield will be called "filing a false police report" ... a entry that policemen seem to frown on. They probably can;t send you to top-security prison for this, but it certainly will help the insurance company contained by their fraud case against you.
SO ....
I guess you would have a fortune of pulling this off, but the risks - jail time and huge fines - are too great contained by relation to the small amount of insurance $$ you would get by scamming the insurance company. Source(s): former insurance agent
Well, the lenders have a "blanket policy" in place, it ONLY covers the amount of the loan.
Every month, they distribute in a "reporting form" to list the vehicle they want covered. That's kind of deceptive, because they enjoy until 45 days AFTER the last day of the month, to take the list in to their insurer.
Anyway. You can't do one and the same, because you don't have access to a personal "reporting form". Ford Credit, for example, will have approximately 100,000 cars insured contained by any given month (at about 10X the cost, btw, each, of YOUR collision coverage). The with the sole purpose question is, which 100,000.
So they pay MASSIVE premiums (which they divide up and overrun along to the lendee), and part of the privledge of doing that lets them enjoy some time flexibility with notifying teh company.
If YOU Paid hundreds of thousands of dollars a month for insurance, you could do it, too. The item is, the insurance company needs to take within more than it pays out, or it goes out of business.
So when you're talking just about insuring 100,000 cars, at $100 a pop for a month, and ONLY paying off the loan balance, the insurance company can afford to discharge a couple loan balances for the 5 - 10 cars that get added on beside the next month's reporting form, and still make money. ESPECIALLY because, the owner of the motor is still on the hook for the full loan amount!! It is STILL collectable, even if the loan was paid bad by another insurer. Source(s): agent, 21+ years
well, first of all, contained by order to purchase comp or collision on a vehicle you need to hold the vehicle inspected. and if you show up at the agency on a bike they will make you sign something saying you will bring the vehicle hindmost in 24 hours or no coverage will exist. so, you get fund on your bike and get home and your car is stolen. guess what? you never have the vehicle inspected so, no coverage!
what your talking about is auto insurance fraud, and once you seize caught your in trouble, big time, they hire bull dog laywers, you think they will consent to you get off?
not to mention if you evolve to get away with anything approaching this, guess whos paying your claim? ME, and your mom, and your friends and your country.
When a new business policy is written the vehicle should be inspected by an agent. It helps prevent fraud. If they estimate you are lying they will investigate, investigate, investigate. The police will also investigate, investigate, investigate since you would be filing a false report
If you already have an insured vehl and this is a newly acquire car then you would be covered as if this be a temp or substitute vehl. You would have to have comp on your current vehl. There is a grace time between the time of your purchase of a new vehl and the time you need to report it to your insurance company.
If i.e. not the case and you didn't have any policies within force and you simply bought a vehl (most of the time they make you prove insurance before you drive it rotten the lot) and didn't have any coverage anywhere you would be looking at fraud. You may also have some sort of a grace time depending on the state that you live in to a newly acquire car.
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