All of us know about the hazards that go along with car insurance fraud. They’ve made sure of it! It seems like you can’t even turn around these days without tripping over another story of someone who tried to con the system and got caught. So you know your insurance providers are standing there looking over your shoulder every time you file a car insurance claim. The question is, who’s standing there looking over theirs?

If you think about it, there’s more potential for disaster in allowing car insurance companies to run around unchecked than in allowing corporate CEOs to maintain foreign bank accounts. Drivers have to have insurance. It’s a need. That means that if they had the opportunity insurers could theoretically send car insurance rates flying through the roof and drivers would have no choice but to pay it. They could find loopholes in claims, forcing drivers to go to court to defend their rights (which most of them wouldn’t, because the court costs would put more strain on their budget than just paying for their repairs).

They could randomly force drivers to raise their coverage limits, refuse to insure people for no good reason. They could send an entire economy into upheaval!

They could, but they don’t. Why? Well, part of it is that car insurance companies that don’t follow through on their promises don’t stay in business very long. And there’s the part about business ethics, etc. , etc. But that’s not the whole story. The whole story involves the business monitoring organizations that are standing there looking over their shoulders.

Did you know that even though there are no specific federal regulations regarding car insurance companies, each state has a state insurance department (insurance bureau, etc. ) that regulates how high companies can raise their insurance rates and addresses customer complaints to stop car insurance companies from going over the edge. These organizations decide how high rates can raise, and they help customers who are struggling against the power of a major organization to get back a little of their own without having to go broke in court.

Have you ever tried to check out a business’s reputation? The first place you’re going to go is to the Better Business Bureau. This is a reporting organization that can tell you everything about a business’s reputation and history. This is a great way for consumers to help keep companies in check, because these car insurance corporations know that black smears on their record with the BBB, Consumer Reports or other national reporting agencies is going to have a bad effect on their ability to attract new clients.

So yes, your car insurance company is looking over your shoulder (but not in a Big Brother kind of way). And yes, there’s someone looking at them looking at you. In theory, it’ll all work out in the end.