What do cars, houses, lives, and health have in common: you can insure all of them! These items and more can be insured because loss prevention is key to protecting your assets and preparing for the future. However, as with all monetary processes, crafty individuals can game the system and partake in insurance fraud. Today, Suzuki Law Offices will talk about the most common forms of insurance fraud in detail.
Common Forms of Insurance Fraud
People can fraud car insurance companies by reporting a stolen car, when in actuality, they sold the car for parts or to someone overseas. When the car is sold for parts, the body shop will dismantle the car until it is unrecognizable, creating the perfect cover for the evidence.
Some people will intentionally wreck their cars to gain insurance money from the accident. In a car accident, the value of a vehicle is inflated. Therefore, wrecking two cars can increase the profits, and a driver and a “victim” can split the total insurance payout after the dust has settled.
Unfixed Car Damage
This is by far the most prominent form of auto insurance fraud, and people may not even realize that it’s illegal! Insurance companies are sometimes required to pay out damages, even if the damages don’t affect the car’s performance. Due to this statute, people ask their insurance companies to cut checks to “fix” dents or dings in their cars, but instead of fixing their cars, they end up pocketing it for other purposes. This is an easy scam to perform, but a conviction will lead to serious time behind bars!
Health Insurance Billing
Doctors and health care providers may use you for insurance fraud. Doctors can tell insurance companies that they gave you an expensive treatment when in reality, no treatment was required. Thankfully, if a doctor is held guilty for this crime, you will not be held responsible.
Staged Home Fires
In some scenarios, desperate homeowners will intentionally set their houses on fire to get money for their homes and possessions. They can hire people to set a fire while they’re away, helping them cash in on the insurance money after the fact.
Insurance fraud is a popular practice, and insurance companies lose an estimated $30 billion a year as a result. However, desperation can cause people to do things they wouldn’t normally do. If you or a loved one are accused of insurance fraud, hiring Suzuki Law Offices could be the first step to getting your life back!