What Is Car Insurance Fraud
We’ve heard of terms like car insurance frauds or any insurance frauds are very often these days, but not many of us really know how this frauds really worked. Car insurance fraud can be defined as a type of fraud that entails the act of someone deceiving or attempting to deceive an insurance provider or insurance company for a claim involving their personal or commercial motorized vehicle. The fraud is carried out by providing the insurance company with misleading, deceiving or false information or documentation to support a fake claim, essentially forging the claim.
Types of Car Insurance Frauds
Let’s start by saying that it is important to prevent this situations of being a victim of staged accidents. once its happen then there are many types of car insurance frauds and mostly insurance companies, especially those that deal exclusively in providing insurance for motor vehicles have already identified ways to prevent such frauds from happening among their clientele. One of them is a false report of an accident or vehicle damage. Such claims are usually accompanied by false police reports and doctored photos that show damage of their supposed vehicle. Aside from this, some clients would file for insurance claims for damages that were already present on the vehicle before the insurance tenure.
Some people take it further and make false claims of a stolen vehicle. Such claims are supported by forged police reports and fake witness accounts in order to make their story seem more plausible. In some other cases, people even conceal the fact that someone, who is not insured under their vehicle insurance policy, was driving the vehicle at the time of the accident.
How To Prevent Automotive Insurance Frauds
For vehicle insurance agents, weeding out the fake cases from the real ones can be quite a handful. However, there are a few ways that you can use to detect forged documents and claims. Be sure to look through the documents and reports submitted to you and note any small differences in them, especially in letterheads and logos. For doctored police reports, you can always go ahead and give your local police department a quick call and see if they do have a copy of the report, with the right report number, in their system.
Be Aware Of The Claims
For claims with personal injuries, get your clients to come in and have a look at their actual damages to see if they tally. Lots of people fail to pay attention to details and mix-up their rights and lefts, giving you clear red flags that their claims might be automotive insurance frauds. And in this day and age, technology has made it much easier for you to confirm if your clients are telling the truth about their claims. Have a look at their social media accounts to see if they have mentioned anything about their accident or stolen car. 98% of people who go through such experiences would be compelled to post them online so this method cuts your work short for you.
People are always trying new ways to get the most out of their insurance claims and as insurance agents, it’s up to us to keep a close eye on every detail of a claim to make sure that it’s not another on of those automotive insurance frauds.
Disclaimer:
The above is intended for informational purposes only and does not constitute a legal advice or specific recommendations in any way.
