It's unfortunate but true: accidents, speeding tickets, and auto insurance claims are a fact of life for most of us at some point in our driving career. Occasionally, we may need to deal with attempted car insurance fraud at some point as well — whether we're directly involved or just paying higher premiums.
According to the National Insurance Crime Bureau, insurance fraud is one of the most costly white-collar crimes. While it's difficult to accurately pinpoint the statistics, the FBI estimates that insurance fraud costs Americans more than $40 billion a year! What this means is that the average American family pays anywhere from $400 to $700 a year in increased premiums as a result.
The recent recession certainly hasn't helped curb auto insurance fraud. According to the NICB, auto glass fraud increased by 527 percent in 2010 alone.
But it's not all bad news. At Esurance, we're committed to fighting auto insurance fraud through our Special Investigations Unit. These insurance sleuths aggressively investigate and pursue any suspicious activity. When they're onto something, it's referred to law enforcement agencies, which can lead to arrests, prosecution, restitution, and the occasional Wall Street Journal feature.
Some common forms of fraud that we find:
- Buying a policy after a loss has occurred and making a claim
- Falsely reporting a vehicle as stolen
- Claiming more damage than actually occurred
- Intentionally causing or staging auto damage or accidents
- Submitting phony injury claims or inflated medical bills
- Misrepresenting application information
How to protect yourself from fraud
Here's the best thing you can do at the scene of an accident: write down all the details as soon as you can and get the contact info of witnesses, and report your claim over the phone or online as soon as it's convenient. We're always here to help.
How to report car insurance fraud
If you believe you've been victimized by fraud, don't hesitate to contact us at any time via fightfraud@esurance.com.
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