Most, if not all, states require drivers to purchase auto insurance coverage. A woman in Pennsylvania decided to add comprehensive and collision coverage to her car insurance policy after an accident had already occurred. She may have thought this would help her save money. In reality, this is a form of fraud.
Not every consumer understands exactly what his or her car insurance policy covers. This makes it difficult for people to compare one policy to another in order to obtain the coverage they require for the least amount of money. Some of the wording in the policies is confusing to consumers.
When you hear the word comprehensive in relation to your auto insurance policy, you might assume that this means that it will cover absolutely everything. In reality, comprehensive coverage is: “Insurance designed to pay for the repair or replacement of the policy owner’s car in the event of damage not resulting from an accident”.
In other words, comprehensive car insurance doesn’t cover damage that is caused by an accident. Your policy must include collision coverage if you want to have some help with damages that are caused by an auto accident. It is important to note that you must have bought collision coverage before you ever get into an accident. Trying to add it after the fact won’t help.
A woman in Pennsylvania, named Regina Whitehead, learned this lesson the hard way. She did not have comprehensive auto insurance, and also did not have collision insurance, for her vehicle. In October of 2011, she was in an auto accident that involved four vehicles.
She was picked up by an ambulance after the accident occurred. It is alleged that she made a call to her insurance company while she was in the ambulance and on the way to the hospital.
Allegedly, she called her auto insurance company and added comprehensive, collision, and rental coverage to her existing policy.
Doing this is legal, and it will cover the expenses due to a car accident that occurs after the additional coverage was purchased. In other words, it was smart of Regina Whitehead to prepare for the future. However, the additional coverage would not cover the accident that had already happened, moments ago.
The problem was that Regina Whitehead allegedly reported a claim for the four car accident to her insurance company in an attempt to have the damages her vehicle incurred paid for by the insurer. She lied to her insurance company about when the accident occurred, and said that the accident happened after she purchased the additional coverage. As a result, she has been charged with one count of insurance fraud and one count of criminal attempt to commit theft by deception.
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