Unfortunately, car insurance fraud is an all too common reality in the United States, and Salt Lake City is no exception.
Statistics About Car Insurance Fraud
Consider these startling statistics about car insurance fraud:
- Fraudulent auto insurance claims total billions of dollars each year.
- Some experts also estimate that 14% of all auto insurance claims are fraudulent.
- Insurance fraud costs the average American family between an estimated $400-$700 every year.
Types of Car Insurance Fraud
Today we’re going to discuss the different types of car insurance fraud so you know what to look out for when protecting yourself from fraudulent claims.
Organized fraud
This occurs when multiple parties work together to stage incidents to make fraudulent insurance claims. For example, if two drivers plan a collision with one another in order to benefit from the claim money and splitting it. Insurance companies collaborate with law enforcement to combat this type of fraud.
Premeditated fraud
Fraud is considered premeditated when a policyholder makes a claim for damage to their car that didn’t actually happen in an accident or how the report that it took place. It often also involves making claims for medical treatments for injuries after a collision that a policyholder didn’t actually have.
Opportunistic fraud
Opportunistic fraud can begin with a legitimate claim, but the damage is exaggerated or inflated to get a bigger insurance payout. It also involves policyholders making claims for stolen property that wasn’t actually stolen.
Protecting Yourself
Now that we’ve covered some of the common types of car insurance fraud, let’s now discuss protecting yourself from these situations. If you’re ever involved in an accident, it’s incredibly important to have proper documentation from the incident. This includes comprehensive photos of the scene and any damage to the vehicles involved. You will also want to take detailed notes, including the date, time, and location of the accident.
Additionally, it’s important to report the damage to the police and your insurance company right away.
If you would like to discuss car insurance in Salt Lake City or you have other questions on the subject, give us a call today so we can help.
