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Tip of the Week
Fraudulent insurance claims are the second most costly white-collar crime in America - to the tune of $40 billion annually. "Each year the average U.S. family is hit with $400 to $700 in increased premiums due to phony insurance payouts," says Dan Bales, national director of special investigations for Mercury Insurance.
There are several common schemes of which consumers should be aware. Staged auto accidents, adding damage to vehicles after a loss and switching drivers on accident reports are a few of the most prevalent scams.
Here are some tips from Bales:
- If you're involved in an auto accident, always call the police and document unusual circumstances or activities.
- Obtain detailed bills for collision repairs, home/property repairs and medical services.
- Never sign blank insurance claims forms.
- Watch for double-billing or unexplained charges for any service received as part of an insurance claim.
- Be aware that there are crime rings that specialize in "slip and fall" schemes, which involve fake injuries and false claims.
- Always gather as much information as possible at the scene of an accident.
- Brandpoint
