What Is Double Dipping?

Many people try to get more money and benefits out of their insurance policies than they should be getting. Auto insurance is meant to protect the owner of the vehicle, whether it is damaged or destroyed. This can extend to people in cases of circumstances that are beyond their control. With car accidents, one party is usually considered to be at fault. This at-fault status will result in their insurance company paying for the damages to others the accident caused.

The claims that get filed to auto insurance companies are made with the company that is paying for the replacement or repair of a vehicle. Some people decide to try and contact the insurance company of the driver who is not at fault and file a claim there as well.

What Is Double Dipping?

When a car insurance claim is filed with both the insurance company of the driver who is at fault and the car insurance provider of the driver who is not at fault, it is called double-dipping. If you are the driver of a car that is not at fault in an auto insurance accident, the other driver's insurance company will pay for the damages caused by the accident. If a claim is also filed to your insurance company, you could receive, illegally, an additional payment for repairing or replacing your vehicle.

It is possible that more than one car insurance company provides insurance coverage for your vehicle. Car insurance companies generally disapprove of people doing this. That said, there is no restriction on the number of insurance companies a person can have policies out on their vehicle for. Keep in mind that double-dipping on car insurance policies is illegal. People who attempt to do so can be prosecuted under the law.

How Double-Dipping On Insurance Works In Auto Insurance?

In order for double-dipping to work, neither the insurance company nor the driver of the other car can be contacted by any other of them. Most insurance companies will contact other parties involved. It is possible that money paid through reimbursement is not known by more than you and the company involved.

Know that if you get caught, there can be severe repercussions. Being paid multiple times for the same reasons in the same accident can cost auto insurance providers a lot of money. Due to this, they pay special attention to claims that have been filed. Because many records are automated, it is a lot more difficult to be successful with this type of fraud than it used to be. Claims are easily checked through multiple systems, making it a huge risk to try double-dipping. It should be avoided, as it is illegal.

What Happens If You Get Caught?

If you are caught double-dipping, there will be consequences. There is always a chance that the car insurance providers will not find out, but in most cases, car insurance companies work with the garages that are repairing your vehicle, as well as other organizations. Due to these things, there is a high probability that fraud of this type will be discovered.

If it is discovered, you can be subject to significant fines, and in many cases lawsuits by both auto insurance providers. You will also find that car insurance companies will contest the claim and leave you without any legal assistance. Not only will you have to pay for repairs on the vehicle yourself, as well as medical costs, but you will be responsible for paying for your lawyer in any legal matters as well.

How To Avoid Double Dipping

With significant penalties in place for people who double-dip, avoiding doing it is a smart plan. It is, however, extremely uncommon to see accidental double-dipping. In most cases, double-dipping is a form of premeditated fraud. The culprits doing it are fully aware when the fraud is being committed. It is possible to be unsure of whether you should be filing insurance claims through more than one type of insurance, however.

You may decide that you want to try and use one policy for one portion of the accident, and another plan for a different portion of the accident. If your health insurance is better than the health coverage that your car insurance provider gives, you may decide that you want to file a claim with your health insurance provider for your medical expenses and another with your auto insurance company for vehicle damages.

This is not illegal to do so long as you are filing a claim with each company for just the amount you need, and you are not filing a claim with multiple companies for the same expense. If you are unsure, you can examine the contract that came with your policy or call the car insurance company and discuss your situation with them. By being fully transparent and honest, you can avoid accusations of double-dipping and a smoother process for filing your automobile insurance claims.

If you want to keep more money in your pocket, committing car insurance fraud is not the way to go. Rather, you should compare rates from car insurance companies every couple of years. At Cheap Auto Insurance, you can save money on car insurance plans and keep more money in your bank account. Also, getting a free quote at Cheap Auto Insurance can help make sure that you are getting the discounts that you qualify for, saving even more.