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Three Things You Should Know about Auto Insurance Fraud

Most of the time anyone accused of insurance fraud is going to be guilty of trying to get away with something illegal. However, there are instances in which someone makes an honest mistake and truly fails to realize his or her actions were improper.

Unfortunately, pleading ignorance when accused of insurance fraud probably isn’t going to get you out of trouble. This is why it is so important to have a basic understanding of auto insurance fraud right from the start, when you begin driving and purchase your first auto insurance policy.

What are some of the things you need to know to prevent an accusation of insurance fraud?

Claim History

Auto insurance providers are going to review your claims history, not just with them but over the course of your driving lifetime. If you have filed more than the average number of claims, your actions are going to raise a red flag. In and of itself many claims will not get you accused of fraud, but it will put you on a company’s watch list, if they insure you at all.

Insurance providers refer to a semi-secret list of items that should put them on guard against fraud. The list includes things like emotions when filing a claim, raising coverage right before filing a claim, and a claim filed with handwritten receipts. Again, a single instance of these things will not get you tossed in a jail cell for fraud, but they will alert insurance providers to be on the lookout for a problem.

Professional Scams

Professionals sometimes rope you into participating in a scam following a legitimate incident. You might be involved in a car crash and suffer legitimate injuries for which you seek medical attention. There have been instances in which the medical professional bills the insurance company for your legit injuries, as well as additional ones that do not exist. Attorneys might also encourage you to file claims for more significant injuries that you actually suffered.

None of these things is your idea and you might not even be completely aware fraud is taking place, but if this occurs, you can be held responsible. If you suspect anyone involved in your case is committing fraud of any kind, you need to speak up. Do not be afraid to ask questions and do not be afraid to go to the authorities. Not doing so could result in your going to jail or being on the hook for huge legal fines.

Want to know more about auto insurance fraud or just interested in finding the best insurance rates in your area? Use our free search tool to learn more.

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