Those who defraud insurance companies are not only stealing from an insurer, they are stealing from us all. We all pay the price for this criminal activity. The ultimate cost of insurance fraud is passed along to consumers through higher insurance premiums.
It is estimated that insurance fraud costs the industry about $30 billion annually. This equates to approximately 10 percent of the losses paid by the industry each year.
Insurance fraud is not only committed by organized criminals, but also policyholders, third-party claimants and service providing professionals. Common types of fraud include inflating actual claims, submitting claims for losses that never occurred, intentionally damaging property, staging auto accidents, and misrepresenting facts about an insurance loss.
Since insurers are not law enforcement agencies, they can only identify and investigate suspicious claims. Once the insurance company’s investigation is complete, claim payments may only be withheld with sufficient evidence to support the existence of fraud. Successfully reducing insurance fraud is dependent upon the joint efforts of insurers, law enforcement agencies, legislators, regulators, and you. Consumers are a vital part of the solution to this problem.
We would encourage you to take a stand against insurance fraud. If you suspect fraud, please contact our claims department at (800) 274-3531 or the National Crime Insurance Bureau at (800) 835-6422. If you prefer, your call may remain anonymous.
Shopping for a used car is never an easy task. Some dishonest individuals and unscrupulous car dealers have resold flood damaged vehicles without disclosing it to the unsuspecting buyer. Flood damaged vehicles are more likely to incur expensive repairs and become unsafe in the future. Many of the future problems arising from flood damaged vehicles relate to the electrical or air bag components. Learn more.
Although vehicle thefts are declining in the United States, a vehicle is still stolen on average every 26.4 seconds. To learn more about which vehicles are most stolen, click here.