The Alleva Agency Blog

As the economy continues to struggle, insurance fraud is on the rise. Because people are more hard pressed for cash, they are looking for more creative ways to earn money- and insurance fraud can often seem like a "safe" option. In a down economy, insurance companies have found that people tend to file more claims for smaller amounts. With fraud being an increasing problem, and the amount of claims insurance companies process multiplying, it is becoming quite easy to squeeze a fraudulent claims through the cracks… or is it?

Often, an insurance company will use its investigative team to thoroughly look into each claim in order to detect fraud. lthough fraud is illegal- and an extremely bad idea- the following are some things that people try to get away with:

• Leaving their keys inside their unlocked vehicle in order to avoid high monthly car payments.
  Although it seems like a decent idea, an investigative team can clearly determine this is an act of fraud based on the string of possible missed payments and lack of evidence of forced entry.
• "Spilling" some gas near their engines, lighting it on fire- and blaming vandals for the ordeal.Bad idea- burn pattern analysis and computer simulations ensure that you will be busted.
• They live at their chiropractor's office after a car accident.One Doctor's opinion will not win you a claim. An insurance company will probably ask for a second opinion.

These are just several ways that an insurance company can catch you if you try to be fraudulent. Most insurance companies work with law enforcement and state insurance departments to analyze fraud and prosecute offenders. Often, you will even be flagged in the very beginning by special insurance company software if you file a suspicious looking claim. If you are busted for insurance fraud, your claim can be denied, your insurance policy could be canceled, and you could face fines or jail time.

Instead of trying to get money from a claim- why don't you search for cheaper auto insurance coverage? Colson and Gosweiler can save you money on your auto policy.