How Insurance Fraud Affects Car Insurance Premiums in Georgia
Reader’s Question:
Car insurance rates in Georgia have gone up. Has this anything to do with the prevalence of insurance scams?
Camille
Columbus, GA
In Georgia, as in any other state, car insurance companies have become big businesses. This is the reason they are targeted as preys by those wanting to rip off large sums of money. And how does this affect your car insurance premiums? Who do you think ends up footing the bill? Car insurance companies initially pay. But they just raise their policyholders’ premiums to offset for the loss.
It is important to arm yourself with valuable information to avoid falling victim to car insurance scams. It is very important to know your car insurance agent. Most people fall victim to fake insurance brokers. Legitimate brokers always carry with them a certificate of licensure.
Avoid paying cash. Instead pay by money order or check made out directly to the car insurance company. And always ask for your own copy of the policy complete with declarations stating your type of car insurance coverage and its limitations within an acceptable period after purchase.
Aside from fake car insurance brokers, be on your guard for staged accidents. The most common of these is the rear-end accident. A scam driver suddenly slamming on the breaks to cause a rear-end collision is how it’s usually done. Aside from collecting money for vehicle damage, the scam driver may go to the extent of faking injuries to collect even more money for supposed medical treatment.
How To Get an Auto Insurance Card in Georgia
Reader’s Question:
Hello out there! I hear that I need some type of auto insurance card to drive in Georgia? Where can I get this card? If a friend borrows my car, can he borrow my card, as well?
Ashton
Atlanta, GA
Hey Ashton, what a kind friend you are to be loaning you car out to your buddies. However, before you even start driving, please make sure that you have at least the minimum insurance required in Georgia.
When you get auto insurance, your insurance provider will be the one to provide you with your insurance information card. This is your proof that you have enough auto insurance coverage to legally drive in the streets of Georgia, and this must be in your vehicle at all times. This is in case you get stopped by cops for whatever reason and they ask you to provide proof of your auto insurance coverage. If you decide to loan your car to a friend, please make sure he has your insurance information card. This card also comes in handy when you get into accidents as it will have all the essential insurance information about your car. Please do not hit the streets without this card. If you are ever caught without it, you will have to face the consequences of paying for fines and you may even have your license suspended. Driving without auto insurance may also cause your vehicle to be impounded. So, please avoid this unnecessary inconvenience and make sure that your vehicle is properly insured before driving
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