Today, auto-insurance fraud has become a big issue. It has gained a lot of attention all over the world due to its effects. Auto-insurance affects all car-owners, whether they participate in it or it. So, whether you are directly involved or not, the rise of auto-insurance fraud has caused an increase in the cost of premiums or insurance claims taking longer to be processed.
- Providing false information when applying for auto-insurance to obtain insurance coverage or get a lower premium.
- Padding or inflating an auto-claim to receive a higher payment or covering a deductible.
- Making false claims of stolen cars, damaged car, or overstating the cost of the damaged property.
- Staging car accidents that leading to false damage claims.
- Having a person burn or steal your car to obtain money from insurance, or to evade costly repairs.
How to prevent auto-insurance fraud
1. Do not pursue a suspicious car. Most criminals take advantage of a car following them to stage a collision.
2. Always contact the law enforcers to report an accident, and get a police report. Make sure the report has the policeman’s name even if the accident is a minor damage. This prevents the criminal from damaging the vehicle intentionally to receive a more money.
3. Use your phone camera or a disposable camera to capture accident proof and the total number of travelers in the cars.
4. In details, ensure you have recorded everything about the accident including license plate, addresses, the driver’s license and the witnesses. You can also add any other important detail you may think it can help.
5. Try to avoid those suspecting witnesses who appear from on-where when an accident happens. Or people who try to direct you to a lawyer or a doctor.6. Be suspicious of doctors who insist you must file an injury claim when you are involved in an accident, even when you are not hurt.
7. Always report an accident to your auto insurance company immediately, even if it’s your fault.
- What are insurance companies doing to prevent auto-insurance fraud?
- Preventing auto-insurance fraud even before it occurs by vetting all the information submitted.
- Forming a special investigation team to fight and prevent auto-insurance fraud.
- Insurance companies have donated special tools to policemen to detect potential insurance claims, and capture car thieves.
- Joining hands with antifraud agencies to prevent auto-insurance and other the general insurance fraud.
How to help with the fightIf you suspect or know a person is planning to commit an auto-insurance fraud, contact the authority immediately. There are numerous anonymous fraud contact numbers you can use. And in case of an accident, ask your insurance agent what you are covered, and which hospital to you visit after an accident.