Car insurance industry suffer fraudulent claims every year, and that’s something really common nowadays. When we talk about comprehensive insurance, we’re talking about some specific ways to fraud to the car insurer, that’s why car insurers must do a great investigation.
In most cases, that fraud comes with inflating the damages or filing false claims, among others, so car insurers know how to detect them and prevent that fraud in comprehensive insurance claims. That investigation is time-consuming and costly, making all car insurer’s customers pay the consequences by increasing their premiums.
Understanding Comprehensive Insurance Fraud
Comprehensive insurance fraud is basically when someone tries to obtain benefit from filling a claim to their car insurer using illegal ways to do it like filing false claims or they exaggerate the damages caused in their vehicles during the accident. Here you can see several comprehensive insurance frauds to their car insurer:
Staged Accidents
Staged accidents involve deliberately causing a collision to make a false insurance claim. When we talk about staged accidents using comprehensive insurance, we talk about falling objects like trees or rocks, hitting deer. As you can guess, those fraudsters typically stage these accident in remote areas to be succeed on their crime.
Inflated Damages
Inflated damages involve exaggerating the damages to a vehicle or property to increase the insurance payout. Fraudsters may add per-existing damage to the claim or increase the real cost of repairs while filing their claims.
False Claims
False claims involve making a claim for damage that didn't occur or claiming for a loss that never happened. when we talk about false claims in the comprehensive coverage we talk about filing theft claims. Your car insurer’s adjuster will have to investigate the theft, in most cases your car adjuster will find your car within a month. So if they find out you filled a false claim, you will face serious consequences.
Preventing Comprehensive Insurance Fraud
Insurance companies can prevent fraud, they only have to use proactive measures. Here are some ways to prevent comprehensive insurance fraud:
Fraud Detection Technology
Insurance companies use fraud detection technologies, they use AI along with their algorithms to analyze the claims they receive, so they can find suspicious claims. If your car insurer finds any small chance that claim was fraudulent, they will flag it. This technology can also analyze patterns in claims data to identify trends that may indicate fraud.
Claim Validation
Insurance companies prevent fraud when they validate each claim before paying them out. So they verify the identity of the person who filed the claim, checking if the damage is really real, and determining if the claim is legit or not. Car insurers also use 3rd-party experts who will verify and validate the claims.
Thorough Investigations
All car insurers investigate all claims, but if they find any claim that looks like more suspicious than others, they will investigate closely. Car insurers will investigate all aspects of the claim like the claim history of the person who filed the claim, the damage to the vehicle, and the evidences needed to support the claim those people use.
In addition, car insurer will also surveillance the person who filed the claim to verify their injuries are legit or if their car was really stolen. In case they find any evidence of that person filed a fraudulent claim, the will find it.
Educating Policyholders
Insurance companies can also prevent fraud by educating their customers about the consequences of fraudulent behavior. This education can include information on the various types of insurance fraud, the legal and/or financial penalties of fraud, and the impact of fraud on their premiums.
Conclusion
Insurance fraud is a serious problem, all car insurers, this problem has been increasing and it will continue increasing in the future. Insurance fraud will also make all their customers pay more premiums because of those criminals who try to take advantage from their policies. However, car insurers have several ways to detect fraud, like validating claims, using fraud detection technologies or investigating every claim will help them to fight against comprehensive insurance fraud. Educating their customers is one of the basis to prevent fraud.
Other readers were also interested in the following posts:
Tips for negotiating with an insurance adjuster for a comprehensive claim
How to Handle Disputes with Your Comprehensive Insurance Provider
The History of Comprehensive Insurance and How It Has Evolved
No comments:
Post a Comment