Insurance Fraud: the Crime That Happens to Everyone

Insurance fraud is frustrating. Even if it isn’t happening directly to you, you’re still affected through higher premiums because of fraudulent claims by others. The worst part is, insurance fraud is almost impossible to prevent ahead of time. Protecting yourself means watching out for common types of insurance fraud and knowing how to deal with them.

Car insurance fraud is one of the more common types, costing about $200–$300 per year extra on your premium. The number of people involved when it comes to car insurance claims is partly why it’s so common: drivers, shops, insurance adjusters, and agents—all of them can be the source of fraud. Here are a few common scams to look out for and how to prevent them.

Health insurance fraud steals upwards of ten billion dollars a year. Although health insurance fraud is unlikely to happen to you, it could.

Homeowner’s insurance fraud is common, too. Sadly, a lot of people take advantage of insurance companies after major disasters, when the insurers are overwhelmed with claims.

Sometimes the fraud is a direct crime against you without a fake claim or trumped up damages involved. Sometimes it’s shady agents or insurance companies straight up stealing from you. Anything from fake insurance to over-charging and pocketing the difference are scams that can happen before you even file a claim.

Even if it isn’t a crime directed against you specifically, insurance fraud is costing you money every day. If you feel you are being scammed or that you have witnessed fraud, report it. Contact the NICB or local law enforcement. It hurts everyone, so it is everyone’s job to be on the lookout.

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