Rising Auto Insurance Frauds, Who is to blame?

Recession has witnessed a spurt in the cases of auto insurance frauds which has cost over $6 billion in terms of auto insurance payments.

Here are some of the startling facts to prove it:

In Hawaii, there was a 61 percent increase in convictions for auto insurance fraud from 2007 to 2008. Car give-ups -- abandoning a car and reporting it stolen -- rose by almost 33 percent in 2008 in New York

In Pennsylvania, law enforcement saw insurance fraud and related crimes jump 30 percent in 2008 over 2007, with car insurance fraud accounting for 46 percent of total fraudulent claims.

According to the state's fraud bureau


These auto insurance frauds are not just denting the insurance companies but even burning hole in the pockets of vehicle owners due to rising costs of premiums. Auto insurance frauds are costing at least $80 billion every year or around $950 per family.

I wonder does this signal the desperation of average Americans who are not able to foresee the demarcation between right and wrong.

Seems in this scenario fewer number of people are bothered about not committing crimes and at the end its ‘we’ who end up facing the music.