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insurance fraud is usually
classified into two categories Hard Fraud and Soft Fraud.
Hard
Fraud: A hard fraud is the
law enforcement term of illegally obtaining money from the insurance
company by faking car accident, injury or theft.
Soft
Fraud: A soft fraud
is the deliberate suppression of minor information to gain money.
Take a look at some
types of car insurance fraud:
Staged Rear-End Car Accidents:
This is the most common way to cheat insurance companies. A car
insurance scam driver will quickly get in front of an innocent car
driver and then slam on their brakes. This forces the innocent driver
to rear-end the car insurance scam driver. Along with collecting money
for vehicle damages, the car insurance scam driver will often fake
medical injuries to collect even more.
Adding Damage: After an car
accident, either staged or not, the car insurance scam driver will go
to another location and cause extensive damage to their vehicle and
claim that the damage happened during the original accident.
Involving
Others To Claim Damage: Some
scam people will take help of unscrupulous mechanics, doctors to
certify the damage done either to their cars or to them as serious,
even lawyers are involved in some cases of fraud. All these are ways to
claim enough money from the insurance companies.
Agent scams: Most car insurance agents
are honest and ethical, but a growing number of car insurance agents
are bilking their customers. Some of dishonest agents steal their
customers’ premiums, but not buy the requested policies. They cover up
the thefts by issuing fake policies or other evidence of coverage.
Customers often discover the scam only when they make a claim and the
insurer says there’s no coverage.
Report
insurance fraud to
authorities. Insurance fraud drives up
the cost of insurance for everyone and has
reached epidemic proportions in the United States, Canada, Europe and
all over the world. It shows no signs of abating.
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