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.