You may have heard the term insurance fraud before and immediately thought of fraud cases you may have seen in the news. However, there are many more out there that never make the news. In fact there are many out there that go undetected which end up costing law abiding citizens more money than you may expect.
Nearly $80 BILLION in fraudulent insurance claims are filed each year which end up costing insurance carriers even more to recover that lost money. In order to recoup some of the money lost, insurance carriers are forced to raise premiums across the board. That is why it is important to always be vigilant in regards to insurance fraud. If you suspect someone may be filing a fraudulent claim, it is always a good idea to report it.
Most states have fraud reporting numbers you can call. In Texas, that number is 1-888-327-8818. In Colorado you can call the Department of Regulatory Services: Insurance Division at 303-894-7490.
When you are filing for insurance coverage, be sure to always include truthful answers to all the questions asked. And remember that concealing anything that could affect your insurance is also considered fraud. Say you have a trampoline in your backyard, but heard you may not get homeowner’s insurance while owning it. If you leave that bit of information out but then later file a claim against your homeowner’s policy– even if the claim is not related to the trampoline- you could risk losing your coverage and a possible legal inquiry as well.
Fraud is a leading cause of high insurance premiums. If we can all do out part to prevent insurance fraud, it may help keep premiums down. Let your insurance carrier know if you make any changes to your lifestyle that could affect your coverage. And report any fraudulent activity you may spot in your daily life.