Argument 1Dick and Jane have insured their house and cars with Farmer’s Mutual for 10 years. During this time, they filed only one claim for $500, and the premiums have risen 100%. Two weeks ago, while backing out of the garage, Jane damaged the right fender. They didn’t fix it, and yesterday, while Jane was parked at the supermarket, someone hit the right side of the car, damaging everything but the right fender. When Jane checks the insurance policy, she discovers that while the supermarket accident is covered, the damaged right fender is not.
Jane says, “Let’s claim that all the damage happened at the supermarket. It’s only fair. The insurance company has made thousands of dollars from our premiums alone, not to mention all the other people they insure, so they’ll hardly miss the few thousands that their repairs will cost. Many of their friends have done the same – included items that were not part of actual collision damage. It’s unlikely that they we will be discovered, because the fender could easily have been damaged in the collision.”
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