What is Auto Insurance Fraud?

Everyday there are cases of auto insurance fraud being committed and it’s hitting everyone’s wallets. That’s right, insured drivers aren’t the only ones paying the price of insurance crimes. Americans pay approximately $80 billion as a result from the insurance fraud that takes place. How? These crimes cause prices to go up on taxes as well as merchandise costs.

So just what is considered insurance fraud, you ask? We’d be glad to inform you. If you suspect someone is guilty of any of the following common forms of insurance fraud or have been victimized, report it to a law enforcement agency. Auto insurance fraud is an illegal attempt to make money through car insurance companies by:

• Intentional accidents
• False personal injury or damage claims
• Filing a false hit-and-run claim for a one-vehicle accident
• Purchasing a policy after an accident has occurred and filing a claim
• False report of a stolen vehicle

These are just the most common cases of auto insurance fraud. Sadly, scammers find numerous ways to con auto insurance companies as a way of getting a quick paycheck. It can also put innocent victims in danger of injury or even death as staged accidents are becoming more common.

It is also being discovered as more of these fraud cases are undergoing investigation, that even organizations may be taking part in fraud. Scheming policyholders have been reported to conspiring with auto shops and physicians as a means for claiming more than necessary. For instance, convincing a doctor to obtain medical treatment that is unnecessary or a body shop to add on more for damage repair allows these businesses to get paid out as well.

Stay aware of insurance fraud to help bring these scammers down. Take precautionary action to avoid becoming a victim to this increasing crime and be prepared if you are involved in an accident. Special investigative units are doing their best to set specific laws and regulations to bring down this crime.