Is The Personal Injury Fraud Claims By Insurers A Rouse To Hide Corporate Profits

 For years personal injury insurance companies have been claiming fraud is getting more and more out of hand. Over the past several years, even with an incredibly poor economy we've seen companies like State Farm have record setting profits of $800 Million in 2009 and $1.2 Billion in 2010.

So with these claims come suspicion as to their motivation. Why would a company and an industry that's doing so well and so profitable claim fraud is killing their profits and causing greater losses to their company??

Profits. Pure and simple.

According to some, the claims of fraud are a "smokescreen to hide padded profits".

This wouldn't be the first time the public trust has been compromised, politicians in hand in order for corporate profits (anyone remember Fannie & Freddie??).

Read more in this great article entitled: Claude Hanuschak: PIP fraud is exaggerated

So when the politicians start with the TV and Radio ads blaming your local doctors and attorneys, remember this blog post and Claude's words... PIP Fraud Is Exaggerated; all because they want to charge YOU higher premiums!

Claims Of Personal Injury PIP Fraud Are Grossly Exaggerated

Brilliance in just a few words. As in all professions, those that commit fraud are an extreme minority.   They are the proverbial "squeaky  wheel" that gets the oil. That being said, the author of this article points out that PIP fraud accounts for less than 1% of all the insurance fraud relating to automobile accidents.  Yest companies like United Automobile & State Farm continue to pound the legislature with ridiculous claims that fraud is the industry standard rather than the exception to the rule. 

Let's not forget that with all the alleged growing fraud, State Farm still posted record profits of $800 Million in 2009 and $1.8 Billion in 2010.  Wow, who knew that fraud would increase their year to year profits so much ? I wonder how that happened. 

Anyway, here's a link to a fresh little article about the often hidden truths - Click here, read & enjoy