Stopping Insurance Fraud

Nearly one of four Americans say it’s ok to defraud insurers, says a survey by the consulting firm Accenture Ltd. Some 8 percent say it’s “quite acceptable” to bilk insurers, while 16 percent say it’s “somewhat acceptable.” About one in 10 people agree it’s ok to submit claims for items that aren’t lost or damaged, or for personal injuries that didn’t occur. Two of five people are “not very likely” or “not likely at all” to report someone who ripped off an insurer. Source: Accenture Ltd. (2003)

Nearly one of 10 Americans would commit insurance fraud if they knew they could get away with it. Nearly three of 10 Americans (29 percent) wouldn’t report insurance scams committed by someone they know. Source: Progressive Insurance (2001)

More than one of three Americans say it’s ok to exaggerate insurance claims to make up for the deductible (40 percent in 1997). Source: Insurance Research Council (2000)

Three of four Americans aren’t willing to pay more for their auto coverage to allow bad-faith third-party lawsuits. Source: Insurance Research Council (2000)

Fraud adds $5.2-$6.3 billion to the auto premiums that policyholders pay each year. Source: Insurance Research Council (1996)

Fraud costs each insured driver in New York State $75-$115 per year. Source: Insurance Information Institute (2001) Claims for bodily injuries under the Personal Injury Protection portion of New York’s no-fault auto coverage rose 79 percent between 1999 and 2000, compared to 25 percent in all no-fault states. Source: Insurance Research Council (2001)

Insurers increased auto premiums up to 25 percent for New York City in 2001. Source: Insurance Information Institute (2001)

Criminals who defraud property/ casualty insurance companies not only steal from insurers, but they rip all of us off as well. Source: National Insurance Crime Bureau

Insurance industry studies indicate 10 percent more of property/ casualty insurance claims are fraudulent. Source: National Insurance Crime Bureau

Fraud is the second most costly white collar crime in America behind tax evasion. Source: National Insurance Crime Bureau

Insurance fraud costs Americans millions of dollars each year. That’s $300.00 in higher insurance premiums for the average household. Source: National Insurance Crime Bureau

Insurance cheats range from organized criminal enterprises, to unscrupulous doctors and lawyers, to dishonest body shop operators, to your neighbors. Regardless of who they are, insurance criminals are motivated by one thing: money. It’s all about greed and taking what isn’t rightfully theirs. Source: National Insurance Crime Bureau

Property/casualty insurance fraud cost insurers an estimated $30 billion in both 2004 and 2005, according to the Insurance Information Institute. Fraud may be committed at different points in the insurance transaction by different parties: applicants for insurance, policyholders, third-party claimants and professionals who provide services to claimants. Common frauds include “padding,” or inflating actual claims; misrepresenting facts on an insurance application; submitting claims for injuries or damage that never occurred; and “staging” accidents.

Prompted by the incidence of insurance fraud, about 40 states have set up fraud bureaus. Source: Insurance Information Institute III Criminal convictions increased 31 percent. Source: Coalition Against Insurance Fraud (2004)

Cases presented for prosecution rose 14 percent. Source: Coalition Against Insurance Fraud (2004)

Investigations initiated increased by nearly 18 percent. Source: Coalition Against Insurance Fraud (2004)

Referrals of suspected fraudulent actions were up 4.5 percent. Source: Coalition Against Insurance Fraud (2004)

Auto Insurance and Rate Comparisons

Buying auto insurance isn’t the most interesting process in the world but if you have to have which it is required in most states you may as well compare rates if you are in the market. Website comparisons like Progressive do a good job giving you a side by side comparison. Other websites allow you to get an Online auto insurance quote from multiple carriers.

Other options would obviously be to search for local insurance agents. If you are a face to face kind of person this might be the best option. However, many people today are on the go and want information quickly which is why getting and comparing auto insurance rates online becomes the solution most people chose.