Are you aware that insurance fraud is on the rise and it effects you?
With fraud in auto insurance there’s the phantom vehicle, phony vandalism, inflated damages to your vehicle, vehicle arson, filing the same claim more than once; staging an auto accident; inventing injuries are all examples of insurance fraud. Fraud departments have even coined a phrase recently “vehicle give-ups fraud”. This happens when an owner of a vehicle cannot make the car payments on it so they file a phony auto theft claim.
With homeowners insurance, the fraud is vandalism, theft of valuable pieces, deliberately torching ones’ own home to collect an insurance claim check that is greater than the value of the property insured.
So how can you help? Many states classify insurance fraud as a crime. Report such fraud to your state Department of Insurance (DOI), the fraud bureau, your insurance company. Insurance companies have special fraud investigation units. During recessions or tough economic times when fraud is on the rise all of these resources are especially vigilant in their attempts to stop or reduce these fraudulent claims.
If insurance fraud is not minimized, insurance rates will keep rising to offset the costs incurred by insurance companies.