Insurance fraud is becoming more popular thanks to larger payouts from the courts. Companies like ours help insurance companies with our insurance fraud investigation services to help crack down on this criminal activity.
Today we will be looking at some of the most common types of insurance fraud.
1) Stolen cars
A common form of insurance fraud involves stolen cars. Many insurance scams involve stolen cars one of which is to take out insurance on a new car, drive it around for a few years and then have it stolen. The insurance company then has to replace this old car with a new one.
These cars can also be sold to illegal chop shops or garages that will strip the car down for parts and sell them on. There are many other insurance scams involving cars and we won’t give them away as we don’t want criminals using them.
Insurance scams like these aren’t victimless crimes, as a result of these fraudulent claims, all of our insurance premiums increase because of them.
2) Staged accidents
Some criminals will stage accidents so they can claim from their insurance companies. These accidents could be anything from fraudsters breaking quickly so that a car will hit them. Staged accidents can also occur in public or private buildings where a person will claim to have slipped because of a wet floor or trip hazard.
3) Staged Fires
Homeowners can commit insurance fraud by setting fire to their homes while removing their most valuable items first and then claiming for them. Although this entire scenario sounds crazy, it’s more common than you may think.
Insurance fraud investigators however can easily tell if a fire was set deliberately and often they can tell you if those items were in the house at the time of the fire.
4) Commercial Fraud
Companies will purchase employer’s liability insurance and public liability insurance and then commit fraud by making up accidents that never occurred or by exaggerating ones that did. This insurance scam involves a lot of planning but can be very profitable for the claimant.
5) Theft fraud
If an item or object is insured then there is a chance that someone may try to commit fraud by claiming the item was stolen. Homeowners may stage burglaries or car owners may have a friend steal their car before getting an insurance payout.
Insurance fraud is very common and the insurance fraud examples above are some of the most common. Thankfully insurance fraud investigators like us are hired by insurance companies to cut down on this type of behaviour.
If you need help with an insurance fraud claim please get in touch with us.