Per the FBI, insurance fraud costs the average family over $500 in the form of increased insurance premiums per year. Insurance Fraud is when someone uses dishonest means to achieve monetary gain from the insurance carrier. These means may be in the form of intentionally causing a car accident, burning down a house, or slipping and falling at a place of business.
When you are driving:
- Drive defensively. Be aware of what is going on in front, side, and to the rear of your car/truck at all times. Use your mirrors. If you are involved in an accident, contact the police immediately. Do not fall for the ‘we do not have to get the police involved’ schemes.
- Listen to your gut instincts – they are usually right. If something doesn’t seem right, make notations of the details, including a description of those involved. Get photographs if possible to show to the police and/or your insurance claims adjuster.
Other situations that cause insurance claims adjusters to suspect potential fraud:
- If a house burns down, there may be exaggerated claims of the house’s contents.
- Did the homeowner really own a Picasso painting?
- Did they really have a collection of rare coins?
- Was there documentation to support their claims stored in a fire safe container or with their insurance agent?
- Was the house insurance coverage limit increased or had life insurance been recently purchased?
Did you know this is committing insurance fraud?
- Car repair facilities that include the claimant’s deductible in their cost of repairs, which is then turned over to the insurance company for full payment.
- Exaggerating injuries from an accident.
There is no such thing as “free money” and “money does not grow on trees.” The money used to pay for these schemes comes from you and me.
So how can we stop these schemes?
- Be aware.
- Contact your local police.
- Contact your insurance company/claims adjuster.
Consultative Insurance Group | 1-800-886-0305