The Most Common Insurance Scams Out There

By: Farid Jan

These days' insurance companies have a lot to deal with, especially with all of the dishonest people out there. We often complain about being ripped off by the huge multinational companies, but some individuals have turned the tables. Just read on to learn about the most common insurance scams of recent times.

Car Insurance Scams

• The imaginary car accident scam – These are also known as ‘Paper Accidents' and they are very common in the car insurance world. In these cases; there is no accident at all, just a clever and devious exercise intended to fool the insurance company. Usually a criminal will join forces with an individual who owns a salvage company. They will cook up a story about a make believe accident; if the claim is less than a thousand dollars, it will not be investigated.

• Hit& Run – The criminal damages his car and pretends that the damage was the result of an accident. The instigator will insist that the damage was done by a mysterious driver who fled the scene. He can get a new car if the damage was sufficient enough to ‘write off' his old car.

• Wave – This occurs when a 'polite' scammer waves the other car to pass him at a crossroad junction. The scammer will then accelerate and cause an accident. With a few fake witnesses they will tell the police that the victim actually ran a red light.

House Insurance Scams

• The 'Over Claim' – this occurs when a household has been unlucky enough to have been burgled. When the claim form is filled in; they will add extra items, or increase the value of the stolen items in order to make some money.

• The phantom robbery – The scammers pretend that they have been robbed and put in an insurance claim for the ‘stolen' items. Usually the police come and take a look at the scene; the scammers will fake a ‘break an entry' and hope that the police are not too vigilant.

• Accidents that don't happen - If the scammers have adequate contents insurance they may wish to upgrade the television set without paying for the privilege. They may drop the television, breaking it in the process. They then will inform the insurance company that an accident occurred and claim for a newer model.

The Reason Why You Shouldn't Do This!

It may seem too easy; why not follow suite and get some money for nothing; after all, the insurance companies have money to burn. Well it's not that simple, if you are thinking about doing this – don't! The risks of being caught far outweigh the fruits of dishonest actions. Insurance companies are very adept at spotting the typical claim scam and will outsmart you every time. If your claim is discovered to be fraudulent, then you will end up in very hot water indeed! As well as a hefty fine and losing your insurance premiums; you will possibly be facing a lengthy jail sentence!

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