16 Aug Insurance Fraud, What You Need To Know

You have heard of credit card fraud, but have you ever heard of insurance fraud? Insurance fraud is when someone makes a false insurance claim in order to collect money that they are not entitled to. Insurance fraud is illegal in all fifty states and it punished harshly. According to the Coalition Against Insurance Fraud, fraudulent claims steal almost $80 million dollars in the United States each year. There are many different types of insurance fraud, including healthcare fraud, vehicle claims fraud, and property fraud. Healthcare fraud occurs when someone defrauds a health insurance provider. Vehicle insurance fraud occurs when someone exaggerates or fabricates to their insurance claim provider. Property fraud happens when someone intently does something to a home or business and then claims it as an accident to collect insurance money.
There are two types of categories that insurance fraud can fall into, soft fraud and hard fraud. Soft fraud is known when someone exaggerates on an existing claim. Hard fraud is when someone fabricates a loss for the simple purpose of obtaining money from insurance. If you find that you are caught in an insurance fraud claim, getting a legal attorney is the best option. Due to the harsh punishment, you must handle the cases properly and be informed of your legal rights. It is always a good idea to stay in constant contact with your insurance agents too. Maintaining a good and friendly relationship with your insurance agent will help decrease the risk for fraudulent claims and suspicious behavior. If you would like to know more about the insurance agents at Spivey Insurance Group, give us a call at 704-821-4460. Keep up with our agents on Facebook, Twitter, Pinterest, and Google Plus!