Auto insurance fraud is a significant issue that impacts consumers, leading to higher premiums and financial costs. It encompasses various fraudulent activities, ranging from individuals bending the truth to organized crime rings engaging in schemes to defraud insurance companies. Here’s what you need to know about auto insurance fraud and how to protect yourself:
What Is Auto Insurance Fraud?
Auto insurance fraud involves deceptive actions aimed at obtaining financial gains from insurance companies through dishonest means. It includes activities such as:
- Providing false information on insurance applications to secure coverage or lower premiums.
- Inflating or padding insurance claims to receive higher payments or cover deductibles.
- Making false claims of stolen or damaged property or exaggerating the value of stolen items.
- Staging automobile accidents to file false injury claims.
- Orchestrating vehicle thefts or arson to collect insurance money or avoid costly repairs.
What insurers are doing to prevent auto insurance fraud
Takes a proactive approach to combat auto insurance fraud by:
- Carefully vetting information submitted on insurance applications to deter fraud.
- Maintaining a dedicated Special Investigation Unit to investigate and combat insurance fraud.
- Collaborating with law enforcement agencies and providing tools and technology to aid in the capture of car thieves and detection of fraudulent claims.
- Partnering with anti-fraud organizations like the National Insurance Crime Bureau and the Coalition Against Insurance Fraud.
How You Can Protect Yourself from Car Insurance Fraud
To enhance your protection against car insurance fraud, follow these tips:
- Avoid tailgating, as criminals may take advantage of close following to stage collisions.
- Report any accident to the police and obtain a police report, even for minor damage.
- Document accident damage and the number of passengers in other vehicles using a disposable camera or camera phone.
- Record accident details, including names, addresses, license plate and driver’s license numbers, and gather witness information.
- Be cautious of individuals who appear at accident scenes and attempt to direct you to specific doctors or attorneys.
- Exercise caution if a physician insists on filing a personal injury claim after an accident, especially if you are not injured.
- Report the accident promptly to your insurance company, regardless of fault.
How you can help in the fight against fraud
If you suspect or have information about someone committing auto insurance fraud, you can help by reporting them:
- Contact your fraud insurance company.
- Send us your concerns by email By staying alert and reporting potential fraud, you can help reduce auto insurance fraud and its impact on consumers.
Learn More About Auto Insurance Fraud
Some insurers actively participate in anti-fraud initiatives and encourage consumers to visit Insurancefraud.org for additional information about insurance fraud and how to protect themselves against it.