If you have a CO auto insurance policy, then insurance fraud is costing you money. That’s because the more fraudulent claims an insurer has to pay for, the more they will have to charge all of their policyholders in order to stay in business. If you’re an honest individual, you could be surprised by the many faces of auto insurance fraud. Here are just some of the more common ways that individuals and groups attempt to defraud insurers:
Faked, exaggerated or prior injuries & over-treatment
Injuries are big business. With the potential for legal and medical fees, and court-awarded damages payments, it’s probably no surprise that some individuals see a car crash as an opportunity. Fraud in this arena ranges from a vehicle occupant exaggerating an injury, to professional practitioners taking advantage of the situation when it comes to billing.
Staged crashes and vehicle thefts
Some individuals don’t wait for an opportunity, they create one! Whether it’s an individual whose intention is to have their vehicle written off and receive payment, or a group of individuals who conspire to stage an accident for the purpose of filing injury and vehicle claims, this type of fraud appears to rise in tough economic times.
Insurers take fraud investigation seriously. However, there is still a tendency for the public to turn a blind eye to insurance fraud. Why? Perhaps because some people see insurers as high-profit giants who can afford to pick up the tab. What’s wrong with that perception? They’re not picking up the tab – you are; every time you pay for CO auto insurance!