Valuable Information Your Should Know:
Tackling Insurance Fraud
Automobile insurance fraud
occurs when people deceive an insurance company in order to collect money to
which they are not entitled. Consumers are paying the price in higher insurance
premiums as a result. It is estimated that 10 to 15% of your automobile
insurance premium can be attributed to insurance fraud. Insurance fraud is a
felony and increases insurance rates for everyone.
WHAT IS INSURANCE FRAUD?
- Giving a false address on an automobile application to qualify
for lower insurance rates;
- Not telling the insurance agent about a teen driver or another
household member who has tickets;
- Giving false information about the use of a car or how many miles
it’s driven to work or school;
- Inflating the cost of a claim to cover a deductible;
- Falsely reporting items stolen from a car, such as tires or fancy
rims, or inflating the value of the stolen items (i.e. six CDs become sixty);
- Claiming nonexistent injuries so that a medical clinic can submit
false bills to an insurer and kick back some of the payments to the "victim";
- Allowing a body shop to remove good parts from a damaged vehicle
and claim that they are damaged or stolen when the insurance adjuster visits.
They pocket the money for the parts, share some with the owner and repair the
car with the originals;
- Arranging for a car with high mileage or mechanical problems to
be "stolen" so the owner can be rid of it; or
- Reporting a vehicle stolen after it has been involved in an
accident.
REMEMBER, IF YOU HAVE INFORMATION ABOUT AUTO THIEVES,
CALL 1-800-242-HEAT
By protecting your vehicle and being alert,
you can be part of the solution,
and you can save money on your insurance
premiums.