Car insurance keeps you, your passengers, and others on the road financially protected in the unfortunate event of an accident.

Composed of several elements that cover different possible expenses, auto insurance provides a monetary safeguard when you encounter the unexpected.

Collision insurance covers the cost of vehicle repairs if you collide with another vehicle or a stationary object. Similar to many health insurance plans, a deductible applies before the insurance company reimburses you for repairs.

Liability insurance pays the expenses of other drivers and their passengers when you’re at fault in an accident. Your insurance company reimburses other parties for costs like mechanical repairs and medical treatments, making them whole again while also protecting your assets.

Comprehensive insurance coverage pays for repairs related to events beyond your control, like weather, vandalism, and theft. Like your collision policy, a deductible applies, usually $500 or $1,000.  

Uninsured and underinsured motorist coverage protects you when a driver with no insurance or minimal insurance causes vehicle damage or injuries. If they have no insurance, you could be responsible for your vehicle repairs or medical expenses. Or, if someone has minimal auto insurance coverage, it may not cover all of your post-accident costs. In these situations, uninsured or underinsured motorist coverage kicks in, ensuring you and your vehicle are made whole.

Comprehensive car insurance coverage pays for vehicle repairs when events beyond your control cause damage. Situations like hail, vandalism, and theft fall under a comprehensive car insurance policy, paying for the necessary fixes to bring your car back to its original condition. Typically, a deductible applies to comprehensive auto insurance, also usually $500 or $1,000.

Medical payments coverage (MedPay) covers the cost of medical expenses for you, your passengers, or family members who are driving and suffer injuries in a collision. 

Personal injury protection, also known as PIP, is similar to MedPay in that it helps with medical treatment costs after a vehicle collision. It differs from MedPay by also assisting with injury-related expenses like loss of income or childcare. 

Part of avoiding an accident is driving a safe vehicle in excellent driving condition. A car that accelerates, brakes, and stops at an optimum level keeps you safe on the road. When you’re in the market for a used car, finding one in top shape can be a hassle. Even though the advertisement for a fuel-saving compact car may look good, how can you know if it’s legitimate? Shift’s certified mechanics perform extensive 150-point inspections on every car and have complete vehicle history reports, so you know your used car feels as good as new.

Car insurance fraud involves unscrupulous drivers taking advantage of an insurance company to secure financial gain. 

While auto insurance helps drivers financially when they’re in an accident, those who commit car insurance fraud deceive insurance companies into paying fraudulent claims. 

Two types of car insurance fraud exist: hard fraud and soft fraud.

Hard fraud involves a concocted accident or theft to receive ill-gotten money from an insurance company.

Soft fraud is more typical and consists of inflating damages on a claim or misrepresenting certain aspects of an insurance application to pay a lower premium.

Several types of car insurance fraud can happen, and knowing what to look for could keep you protected. 

Deceptive repair shops sometimes exaggerate vehicle repairs to inflate insurance claims. A typical situation might be a shop installing used parts but invoicing the insurance company for new parts. Or a repair facility might overcharge both the insurance company and the driver for parts and labor, pocketing extra money in the process.

Sometimes, underhanded drivers abandon their vehicles by leaving them in a remote location or selling them, then claiming theft. This practice is especially dishonest, as these drivers file a claim for vehicle replacement, fleecing an insurance company for thousands of dollars.

And with insurance premiums varying depending on where drivers live, sometimes people falsely register their vehicles in locales with cheaper rates. 

Finding a quality used car that keeps you safe out on the road can be time-consuming and stressful. Where can you find not only the make and model you want but also for an excellent price? Whether you’re in the market for a used electric car or a full-size truck, Shift has a wide selection of fully inspected vehicles on its easy-to-use website, located across the country. When you buy from Shift, you get a fair, no-haggle price driven by powerful machine learning algorithms and tons of data.

While car insurance provides reassuring financial protection for drivers, some people take advantage of the system. 

While an honest car insurance customer might file a claim for necessary vehicle repairs, someone who commits insurance fraud exaggerates the cost of those same fixes, pocketing extra money in the process.

Being aware of the types of car insurance fraud, both hard and soft, keeps you well-informed on what to look out for to avoid being a victim. If you’re in a collision and something doesn’t seem right, staying in close contact with your insurance company ensures your protection throughout the claims process. 

Additionally, knowing the details of your car insurance policy can help smooth the claims process if you’re in an accident because you’re aware beforehand of what’s covered and what isn’t.