5 Insurance Scams and How to See Them

Insurance  scams have become a way for criminals to rob insurance companies for  money, without directly stealing it. Keep in mind, insurance fraud makes  you just as guilty as the next criminal, but it’s a scam that is  practiced by many and unfortunately, a lot of these individuals have  never spent a day behind bars. Below, you will find 5 common insurance  scams and you will also learn exactly how you can see them.

 1 – Forcing a rear-end collision

One common auto insurance scam is when an individual forces a  rear-end collision. Since this is a difficult type of accident to judge,  it’s almost always deemed the behind drivers fault. Therefore, someone  who is committing an insurance scam can swerve in front of another  vehicle and apply the brakes. If the vehicle rear-ends them, it will be  their fault and the insurance scammer will not only get compensated for  the damages to their vehicle, but they can also claim injuries and  receive cash for their discomfort and medical bills as well.

 2 – Life insurance fraud

Another common insurance scam is life insurance fraud. Essentially,  con artists will fake the death

of someone that they are the beneficiary  of a life insurance policy for, in order to receive the life insurance  benefits after they are determined dead. Some con artists will even  stage a funeral in order to accomplish their goal.

 3 – Falsely reporting stolen possessions

Renters insurance and homeowners insurance will often cover some of  the possessions that you have inside your home. This can include  furniture, jewelry, clothing, and much more. Some insurance scams have  been from individuals that have falsely reported these possessions to be  stolen. In actuality, the possessions they are claiming to be stolen  are likely being stored somewhere, which they will return to the home as  soon as the money comes through from the insurance company. It’s an  elaborate and un-thoughtful scam, as many of them are.

 4 – False injury claims

With any type of vehicle accident, false injury claims are incredibly  common. This happens when someone is involved in an accident and  reports an injury due to the negligence of the other driver. In some  rare cases, individuals will report injuries when they aren’t even  involved in the accident. Just this year, a man was arrested for jumping  onto a bus after an accident occurred and then clutching his back in  pain, in order to later file a false injury claim.

 5 – Stolen car fraud

Criminals come up with innovative ways to cash in all the time. One  insurance scam that is not entirely new is reporting your car as stolen,  when it is actually not. There have been all sorts of con artists  convicted of this crime, many of them end up getting caught because they  continue to drive the vehicle even after they have reported it as  stolen.

Insurance scams are common in today’s society and if you want to see  them, you have to have your eyes peeled for some of the more common  scams that we see today.

Author Bio: Stevie Clapton works for CarInsuranceQuote.net where you can find articles and assistance on everything car insurance related.