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A lot of money is lost each and every year to auto insurance fraud. Who cares? You really should care and with good reason: You are paying more in premium today partly because of the activities of these fraudsters.

Let’s put it another way: If insurance fraud can be eliminated, your total spend on insurance might drop by a couple of hundred dollars without any reduction in the level of coverage you enjoy — Now, you are interested!

You must understand that this is the case because the only product that an insurer actually sells is the coverage you are given — Nothing more. Since this is the case, their way of generating revenue is the premium you pay from time to time.

Therefore, if anyone or group of people do things that raise their overheads they’ll have no other option but to raise your premium. So when next you are tempted to say that it’s none of your business remember that it’s actually all of your business since it affects what you pay each year.

When a market or industry is very tough and there is fierce competition participants will either have to innovate of be driven out of business. While many innovate, some might resort to tricks provided they can get away with. The same holds true of the auto insurance sector. There are tricks that are played in each insurer’s bid to increase market share.

But with the right information, you can actually turn those tricks to your advantage. For example, there’s one trick that they play when looking for new prospects: They reduce their rates by a very high margin. However, say, after a year or so, they increase premiums to reflect what they actually charge.

Now, we know that unlike a life policy, an auto policy does NOT build any form of cash value or equity. This means in effect that you do NOT actually lose anything serious if you decide to switch to an insurer with a much better rate. Therefore, once you notice that your insurer has raised your rate without good-enough reasons, it’s recommended that you get and compare new quotes and switch if the difference makes it worthwhile.

You’ve finally got that car. You’ve been wanting it for years. And over the years, you wavered about the financing of the vehicle, whether you should pay for it outright, whether you should lease it first, and then put in payment to own it one day. You just were generally even kind of anxious about the whole thing. But now you have got it. You have it. It’s in your possession, and it’s yours until you or the car passes. So now what? Take it out for a spin? Nope. Get it insured! Get a good auto insurance policy to cover that thing man. Because if you don’t, all that back and forth, all those discussions you had with your girlfriend or friends, or spouse… All that’s out the door. You’re throwing all that effort away if you decide to take some haphazard, careless decision about this one most important responsibility to driving that there is.

What were you thinking, putting off renewing your policy over and over like that? You had the notices in the mail; you got the emails from your broker, but you just put it off. You should have talked to you broker about it; you should have said, “Hey man, budgets are running a little trim, can you buy me some time with the insurer at all?” That would’ve at least opened up the conversation to finding out how you could keep your auto insurance coverage going. Here’s a fact: when people are stressed because of bills, taxes, etc. etc. All that banking and financing stuff. People are more likely to get into accident, but also more likely to not have renewed their policy. So you can see how this can turn into a vicious spiral; we’re not just talking slippery slope here. We’re talking full on storm and whirlpool, and it’s time to start taking charge.