How to Protect Yourself From Auto Insurance Fraud?

how to protect yourself from auto insurance fraud

The coalition against insurance fraud reports that false claims cost US consumers over $80 billion annually. The frustrating part is that policyholders bear the expense of false claims-not to forget the expense of investigating and encounter their illegal activities. Eventually, people who commit fraud with insurance companies are damaging all loyal consumers through higher insurance premiums. In the end, preventing insurance fraud may have a significant impact on lower car insurance premiums.

What Is Car Insurance Fraud?

Car Insurance fraud is the second on the list of most pricey white-collar crime in America. Moreover, Insurance fraud starts from honest policyholders turning the truth into organized crime rings, swindling millions of dollars. Fraudulent car insurance cases can emerge from:

  • Providing misleading facts on an insurance coverage application to get insurance coverage or a lower premium  
  • They inflate or pad a car claim to receive a higher payment or cover a deductible.   
  • Giving false information regarding the worth of stolen items or damaged property.
  • They burn a car to receive money from car insurance or prevent the high cost of repair.

What Should Your Car Insurance Provider Do?

The strategies are below:

  • Prevent fraud by thoroughly evaluating the details on applications. 
  • Assign a team that will defend your case.
  • Providing special tools to security agencies will help them find out thieves of stolen cars. Also, add modern technology to your system to detect false claims. 
  • Engage with organizations that work for the anti-fraud groups such as the coalition against insurance fraud, National Insurance Crime Bureau, and other security providing agencies.

How Can You Prevent Yourself From Car Insurance Fraud?

National Insurance Crime Bureau suggests some strategies that could help you prevent yourself from car insurance fraud.

  • Criminals often take advantage of tailgating to execute a collision.
  • Inform the police to report a crash and get a police report with the officer’s name. Even though only minor loss appears. Also, this act will make it difficult for criminals to damage the car intentionally after trying to get a considerable amount in the claim.    
  • Use a small/spy camera or mobile phone’s camera to record the event and number of passengers in other cars.
  • Note every detail of the accident, including names, residence place, license plate, driving license numbers, and anything else that could help you describe the event’s details.
  • Do not engage with a stranger that appears unexpectedly on an accident scene. And attempt to steer you to doctors and legal practitioners.  
  • Be vigilant of doctors who recommend you after an accident to file an injury claim, significantly if you are not hurt.
  • Finally, Notify the insurance provider about the crash as soon as possible – even though you are not at fault.