COLUMBUS — In today’s troubled economy, many individuals are finding it difficult to make ends meet. Ohio Department of Insurance officials have noticed that insurance fraud, through staged thefts or losses, also known as vehicle “give-ups”, are on the rise as individuals are desperate to find ways to get out from the mountain of debt hanging over them. Insurance Director Mary Jo Hudson is reminding consumers that insurance fraud is a crime and those who intentionally destroy or dispose of vehicles in order to collect insurance proceeds could face criminal charges. Those prosecuted could further face large fines and/or jail time if convicted.
“Insurance fraud affects everyone,” Director Hudson said. “Every instance of insurance fraud results in higher premiums for law-abiding Ohioans.”
Vehicle “give-ups” involve consumers going to elaborate lengths to destroy or dispose of a vehicle. Not only have consumers been known to abandon their vehicles on the side of the road with the keys in the ignition, some have faked the theft of their vehicle or have intentionally torched their automobile hoping that the insurance money they collect will satisfy the debt owed to the lien-holder.
If you are having difficulties making ends meet, and are unable to make your monthly car payment, Director Hudson suggests contacting your auto loan provider to see if there is a way to make your monthly payments more manageable. Additionally, she suggests talking to your insurance agent about ways in which you can reduce your auto insurance premiums.
Tips on Saving on Auto Insurance:
- Increase your deductibles.
- Drive safely and reduce the amount you use your car.
- Ask your agent about available discounts, such as a good driver or good student discount.
- Shop around for the best deal. Ohio has the 13th lowest auto insurance rates in the country so more than likely you’ll be able to find insurance coverage that fits your budget.
- Talk with your insurance agent on an annual basis to determine the best coverage for you and your family and your family’s budget.
The Department’s Auto Insurance On-Line Toolkit, available at www.insurance.ohio.gov provides guidance on auto insurance needs for different life stages, information on state minimum requirements and a list of frequently asked questions about auto insurance. There are also links to the Bureau of Motor Vehicles and National Association of Insurance Commissioners’ (NAIC) web site.
If you suspect someone has committed insurance fraud, please contact the Department’s Fraud Hotline at 1-800-686-1527. Ohio insurance consumers with questions and concerns about their insurance can call the Department’s consumer hotline at 1-800-686-1526. Free information can also be obtained at www.insurance.ohio.gov.