5 indications of potential motor vehicle accident insurance fraud

| Feb 20, 2020 | Insurance Coverage

It’s troubling but true that insurance fraud is far too prevalent today. While insurance companies are often villainized by the public, many people take advantage of these companies. People regularly expect more money than their policy entitles them to and may file for more damages than they are due. This is more than unethical. It is illegal—and actionable by law.

Here are some indications that might warrant insurance adjusters taking a closer look at a motor vehicle accident claim:

  • Late accident report. If the person failed to report the incident at the time of occurrence, it may indicate that the accident was too minor at the time to be worthy of note. They may only have considered later that they might be able to get some money for it, despite the small amount of damage.
  • Delayed injury report. If the individual failed to see a doctor in a timely manner or did not mention an injury at the time of the accident, it’s worth asking about. Injuries do not always manifest immediately, so this is not necessarily a sign of fraud. However, it is unusual not to get yourself checked out after a significant accident. Delaying a check-up may be cause for concern.
  • Extreme injury damages claimed. If the injury seems more extensive than the accident warrants, don’t take it at face value. It’s true this individual deserves compensation, but that compensation should be fair. Perform your responsibilities to your company well by checking their policy and hiring medical and psychological experts to ascertain their true state of injury if necessary.
  • Exorbitant vehicle damages cited. If the amount cited on the claim seems outrageous, it probably is. Further investigation should be part of the insurance adjuster’s due diligence.
  • Pushy behavior. Anyone who knows too much about the insurance process or is too demanding might be worth checking out.

Unfortunately, insurance fraud affects more than just the individual claimant and the insurance company. It also affects the premiums and payments of all the other people who work with that insurance company, so it’s a serious problem that should concern everyone.