Insurance Fraud Prevention

1
There are a number of crimes that people commit
every day, and one of these crimes is fraud.
2
Fraud is a crime that causes millions in damages
to people worldwide.
3
However, a popular form of fraud in the United
States is insurance fraud.
4
People commit this crime for a number of reasons
and these reasons can include taking the blame
for someone else when they have been in an
accident.
5
An example of this could be a parent taking the
blame for an accident, so that the families
insurance rates dont increase as much as they
would if the teenager wouldve come forward and
admitted to being the cause of the accident.
6
Getting lower premiums due to misrepresented
information claimed as fact is considered
insurance fraud in most states.
7
Every year, thousands of people are convicted of
insurance fraud in the US.
8
New Jersey's Commissioner Kobylowski claim, "When
people commit insurance fraud, it costs all New
Jersey drivers."
9
This can be true for every other state as well.
10
The National Insurance Crime Bureau reports that
on average, insurance fraud increases premiums by
200-300 a year.
11
In New Jersey, specifically, some individuals
have up to 250,000 in benefits per accident
while some states limit coverage to only
5,000-10,000.
12
While this is good for someone honestly involved
in a car accident and is injured because of it,
it also leads people to try and game the system.
13
If you are one of those people actually injured
in an auto accident, beware of situations where
you might be taken advantage of.
14
Some sources of auto insurance fraud are medical
services that are billed to you, but never
provided, unnecessary medical services or
procedures, and billing more than usual for
certain medical procedures.
15
There are also numerous ways that insurance fraud
cons use their vehicle, such as false hit and
runs where they claim you hit their vehicle, when
it was actually pre-existing damage to your
vehicle.
16
Many of the ways that insurance fraud can rope
you in involve how close you are to their vehicle.
17
Although it may require you to pay more attention
to your driving habits, keeping your distance and
observing your surroundings is one of the best
preventative measures when it comes to auto
insurance fraud.
18
Another option is to install a dash cam to
capture anything that might occur while driving.
19
These cameras can be set to turn on and record
only when you are driving, and are ready at a
moments notice to provide the evidence necessary
to prove your innocence in the event that someone
tries to commit fraud, and claim that the
accident was your fault.