Insurance fraud costs you money
March 28th, 2008, 12:48 pm · Post a Comment · posted by Tony Natale
Insurance fraud is a growing problem in Arizona and the nation.
AAA of Arizona estimates that insurance scams cost the average Arizona family an additional $300 in premiums a year.
“Anyone with an insurance policy has felt the adverse effects of insurance fraud,” said John Lawson, AAA Arizona vice president of insurance services. “And because this affects everyone with an insurance policy, it is important for consumers to know that this is a real and serious problem that authorities can’t fight without their help.”
Lawson said the first protection against insurance fraud is to remain alert and follow the proper procedures should you become involved in or witness an auto collision. Here are some things to remember:
* If you’re approached by someone at the scene of an accident who suggests a doctor or lawyer who can help you “make money” or by a mechanic who offers to “bury” your deductible by inflating the estimate for repairs, don’t accept these offers.
* Report accidents to the police, whether you are involved or are simply a witness. If you’re involved, let your insurance company know, regardless of who was at fault. Your report is important to establish the legitimacy of your claim, as well as to determine if claims made by others are fraudulent.
* Keep a record of what happend at an auto crash and what was said. Get the names and phone numbers of all involved parties, passengers and witnesses along with the name of their insurance company.
* Keep a disposable camera in your glove compartment so that you may take pictures of any damage to vehicles immediately after a collision.
* If you are approached with a fraud scheme, report it. Call the Arizona Department of Insurance Fraud Unit at (602) 912-8418 and keep your records of the incident.
Insurance fraud, basically, occurs when a person intentionally deceives another about an insurance matter to receive money or other benefits to which they are not otherwise entitled, warns AAA Arizona. The impact of insurance fraud is felt after insurance companies divide the costs of claims among policyholders who must pay for increased premiums. This effects all policy holders.
An insurance industry study shows that 10 percent or more of property and casualty insurance claims are fraudulent. This amounts to an estimated $30 billion a year, according to the Insurance Information Institute. For more information visit www.AAAAZ.com.
