To be fore-warned is to be fore-armed. The news of and increase auto insurance fraud in California by as much as 25% is a news that should get drivers in California thinking about how it would affect them. How indeed would this affect the regular driver's auto insurance policy.
There are two obvious effects this would have on Californians and knowing them would help in preparing to effectively counter the effect.
1, There would likely be a more thorough process for checking and vetting claims. This in turn would mean that most claims would take more time to be honored as the insurance companies would what to pick the whole claim apart to find any fraudulent traces. This means a lot more time would elapse before claims are honored.
Come to think of it, we are likely also going to be seeing more court cases between insurance companies and insureds over non payment of claims. I think this might happen because when the insurers begin to suspect everyone, any little thing that looks irregular can make them cry foul and decide not to make good on a claim.
2, Insurance companies may generally increase their rates to cover for the loses they have incurred as a result of these fraudulent claims.
What should Californians do?
Of course, the first thing every Californian should do is be careful. Then of course before making a claim, you need to have all your facts straight so you do not have to have too much issues with your claims investigators.
Secondly, you need to begin to get more quick auto insurance quotes. Quick auto insurance quotes would help you find an insurer to give you the coverage you need at the most competitive rate. You need to do this as often as possible to be sure you are never paying more than you should.