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The insurance companies, who would rather pay off a bogus claim than fight it. They just pass the cost on to the consumer, us.

My wife's an insurance claims investigator, so I can't let this one pass by uncommented. The insurance companies do not like to pay off bogus claims. They do a return on investment type of analysis on claims that seem to be bad. If it's going to cost a lot more to defend a claim than it would to just pay claim, then they have to pay the claim to keep the costs down. Some claims, those that would set an expensive precedent, must be defended, even at great cost. But, for the most part, if someone has a "legally credible" claim and seems willing to pursue it in court, they have no economic choice but to pay a few bucks to make it go away.

OTOH, most insurance companies do have a fraud department, which they refer these claims to. Also, they index pretty much everyone that makes a claim to see if they have a history of making similar claims.

Hedge - who is only repeating what he thinks he heard, and not stating that these are the facts and nothing but the facts
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