Committing Auto Insurance Fraud Isn’t Worth The Risk
Each insurance company has such a unit whose members typically come from law enforcement and medical backgrounds. Most units have access to sophisticated machinery and techniques—plus years of experience—that they use to analyze data and help detect fraud.
Here are a few ways policyholders try to benefit by filing fraudulent claims:
Reporting a “stolen” vehicle.
The vehicle wasn’t really stolen; the owner simply left the keys inside and the car unlocked and it somehow “disappears.” The first thing SUI investigates is how far behind the owner is on car payments. When the car is found without signs of forced entry and the owner is behind on payments, fraud is usually suspected.
Claiming the car was vandalized
Owners do set fire to their cars and then try to blame the incident on vandals. The problem is, analysis of burn patterns and computer simulations make it easy to determine when a fire was set intentionally.
Claiming whiplash
Even though they were not present, the SIU can figure out a lot about your accident by analyzing the resulting damage including whether you were hit hard enough and from the correct angle to get whiplash.
Including others in the claim who were not present
The SIU reviews all accident accounts and reports, not just the ones you make. Whenever inconsistencies arise regarding the parties involved, the red flag of potential fraud is raised.
Unusually high number of chiropractic visits after an accident
Medical experts are usually part of the SIU and they know how much and what type of medical attention your injuries require. Since this type of fraud requires multiple players, the team also keeps tabs on lawyers and medical personnel, looking for patterns of excess treatment and referrals to specific clinics.
Padding the amount of damage/estimate to repair damage
People try adding damage that happened previously to their claims and they sometimes get repair shops to pad repair estimates, thinking the auto insurance company won’t notice such seemingly minor additions. But they do! Remember they have a lot of experience with damage and the costs to repair that damage.
Buying coverage “after the fact”
Filing a claim days after new coverage is purchased is a definite red flag and so is calling repair shops before you purchase the coverage!
No matter how you try to attempt it, crime really does NOT pay!