Did You Know?
Automobile Insurance Fraud is an $80-billion industry that is driving up insurance prices
Types of Auto Insurance Fraud One in three U.S. adults-33 percent-say that it is all right to exaggerate insurance claims under certain circumstances, according to a recent Insurance Research Council (IRC) survey . Fraudulent claims are made to collect on fictitious injuries or make claims for auto repairs that were not performed. Dishonest, greedy doctors and lawyers work together - directly with fake "victims" to make false claims and convince insurance companies to settle those claims.
- Accidents where the drivers conspire to intentionally collide with each other's autos.
- Accidents where criminals involve you in a wreck that is made to look like your fault.
- Repair shops fraudulently charge for replacement parts or bill for unperformed work.
- Falsified or fictitious accident reports are filed with insurers to collect on auto policies.
Ways to Defend Yourself Against Auto Insurance Fraud
- Avoid putting insurance company decals on your car. It tells fraudsters planning staged accidents that you are insured and makes you a target for fraud.
- Keep a safe following distance when the vehicle in front of you has three or more passengers. Fraudsters load the car with multiple passengers to increase the value of their injury claims against you.
- Watch for a cars in adjoining lanes unexpectedly swerving in front of you, then quickly braking in apparent panic stops. Always watch for vehicles with three or more occupants since it is common for fraudsters to use multiple occupants in auto insurance scams.
Auto Insurance Fraud Resources
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