Automobile accidents are a horrible thing to cope with. Never mind the actual wreck itself, there is also the issue of insurance businesses and repairs to deal with. Always be diligent when dealing with repair bills, as accident damage overcharging can add hundreds, if not thousands, to the costs associated with crashes.
Stay away from the overcharging
Automobile accidents are bad enough to weather, but the next step after that, namely getting the car fixed, can almost be worse. Not only does one have to deal with the insurance business, but one also has to get an estimate for the repairs. It's also just that - an estimate. Nothing keeps a repair shop from holding to it before submitting the actual bill.
According to Edmunds, not all body repair shops are produced equal; some will low-ball the initial estimate to not only land the consumer, but additionally to get the insurance company to approve the repair. Once the actual bill comes, it might be a lot higher, which can stick the consumer for the difference out-of-pocket. Sometimes it's perfectly legitimate; damage can sometimes be worse than seems like in an initial inspection. Always get an itemized estimate and review it line-by-line.
Overcharging a rented car
One of the most commonly-accused parties in crash repair overcharging is rental car companies. Over the years, a number of rental agencies have been accused of drastically charging up to twice the amount a repair would cost if a rental car is damaged. In 1988, according to the New York Times, Hertz was caught charging customers more than double the cost of repairs to fix cars damaged in accidents, netting $13 million over many years from the scheme.
A letter written to the "What's Your Issue?" column of the Chicago Tribune in 2010 claims National tried to gouge a male with charges for new radiator, front grille and bumper for a Ford Mustang a male was driving on his honeymoon in that year. The car broke down unexpectedly, and he got a replacement rental. He never had an accident.
Right after someone has been in an accident, they get "credit hire" services that get repairs and rental vehicles. Evidently, the services in the U.K. have been overcharging about $310 million a year, or about $200 pounds.
Legally fraud
Technically, it is fraud to try and get more money out of an insurance business or consumer by overcharging for a repair, and legally it is an issue. The National Insurance Crime Agency estimates that about $300 additional per year per policy is added by Insurance companies to cover fraud. According to the Texas Department of Insurance, it is surely fraud to exaggerate damage claims like that, which is not okay with the law.
The NICB also estimates that up to $120 billion is lost annually to insurance fraud and that up to 10 percent of all injury and property claims are fraudulent.
Stay away from the overcharging
Automobile accidents are bad enough to weather, but the next step after that, namely getting the car fixed, can almost be worse. Not only does one have to deal with the insurance business, but one also has to get an estimate for the repairs. It's also just that - an estimate. Nothing keeps a repair shop from holding to it before submitting the actual bill.
According to Edmunds, not all body repair shops are produced equal; some will low-ball the initial estimate to not only land the consumer, but additionally to get the insurance company to approve the repair. Once the actual bill comes, it might be a lot higher, which can stick the consumer for the difference out-of-pocket. Sometimes it's perfectly legitimate; damage can sometimes be worse than seems like in an initial inspection. Always get an itemized estimate and review it line-by-line.
Overcharging a rented car
One of the most commonly-accused parties in crash repair overcharging is rental car companies. Over the years, a number of rental agencies have been accused of drastically charging up to twice the amount a repair would cost if a rental car is damaged. In 1988, according to the New York Times, Hertz was caught charging customers more than double the cost of repairs to fix cars damaged in accidents, netting $13 million over many years from the scheme.
A letter written to the "What's Your Issue?" column of the Chicago Tribune in 2010 claims National tried to gouge a male with charges for new radiator, front grille and bumper for a Ford Mustang a male was driving on his honeymoon in that year. The car broke down unexpectedly, and he got a replacement rental. He never had an accident.
Right after someone has been in an accident, they get "credit hire" services that get repairs and rental vehicles. Evidently, the services in the U.K. have been overcharging about $310 million a year, or about $200 pounds.
Legally fraud
Technically, it is fraud to try and get more money out of an insurance business or consumer by overcharging for a repair, and legally it is an issue. The National Insurance Crime Agency estimates that about $300 additional per year per policy is added by Insurance companies to cover fraud. According to the Texas Department of Insurance, it is surely fraud to exaggerate damage claims like that, which is not okay with the law.
The NICB also estimates that up to $120 billion is lost annually to insurance fraud and that up to 10 percent of all injury and property claims are fraudulent.
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