Dealing with Auto Insurance Fraud ?

Answer 1

Auto insurance fraud is a widespread problem around the world, and car insurance companies literally lose millions of dollars each and every year due to fraudsters who take advantage of others. With an increase in the cost of living and the economy still on uncertain footing for some folks, fraudsters have come to view car insurance fraud as one way to get their hands on some quick cash.

So-Called "Victimless" Crime

Any people think of auto insurance fraud as a crime without a victim. After all, insurance companies are worth millions, right? But the truth is that insurance fraud hurts everyone, including you. This is because when an insurance company loses money, the cost of that loss is passed on to the consumer, regardless of how honest you may be! Everyone pays higher premiums to cover the shortfall that is created by insurance fraud.

While car insurance companies have stepped up their efforts to put an end to insurance fraud, the truth is that they can't and don't catch it all. You can help to protect yourself from being an unwilling participant in insurance fraud (and even having your claim denied) by following the tips below.

Choose Reputable Shops for Estimates

If you have been involved in an accident, you will likely be asked by your insurance company to provide one or more estimates for repairing your vehicle. Getting three to four estimates from the most reputable mechanics and body shops in your area is important. Choose those shops that have a reputation of offering accurate price quotes and honest service. An honest repair shop will not inflate their rates or make an estimate for repairs that do not need to be done.

Keep Receipts and Invoices

When you make a claim with your insurance company, be sure that you have the proper documentation to verify the claim. For instance, if you are claiming damages or wish to be reimbursed for medical costs, keep your receipts and invoices to present to the insurance adjuster. Or if your car was burglarized, make sure that you have a receipt for the CD player that was ripped out of your dash.

Cooperate with Your Adjuster

If your insurance adjuster suspects fraud, he or she will investigate the circumstances regarding your claim. It is important to be honest and helpful to your adjuster in order to resolve the issue as amicably as possible. Be courteous to the adjuster and answer any questions to the best of your knowledge.

Reporting Insurance Fraud

And last of all, if you suspect that someone you know is committing insurance fraud, report the fraud to your state department of insurance, or to the insurance company that is being defrauded. In most instances, you can provide a tip about possible fraud while remaining anonymous.