How to Protect Yourself from Insurance Fraud

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One of the reasons why some people are doubtful about availing insurance premiums is the fact that some thieves and robbers use it as an avenue to deceive more people. We have to account that insurance is all about trust and if that trust is broken, it’s very difficult to repair it again. This has happened in the landscape of insurance industry for a lot of times and proving the worth of legitimate insurance companies is a continuous process.


Cases of false insurance claims are not new. The mere existence of insurance contracts provides different opportunities for defrauding acts to be committed both in the half of insurers and the insured. An example of which is a staged collision. Today, people are becoming more cautious about the veracity of insurance companies’ claims.

In here, we wanted you to be protected from insurance frauds. That’s why we’re providing you the rules to follow so that you won’t find yourself being caught in the bait of these thieves whose only scheming end is financial profit.

Protect Your Information

Before you even start disclosing pertinent information about your properties, savings accounts or financial standing, you have to be cautious enough about the risk when you disclose these kinds of information to someone. Apparently, insurance agents are trained to filter your information down to your capability of paying.

Protect your information. Make sure that you disclose these kinds of information after you have verified the business’s legitimacy. Furthermore, don’t involve extra parties for such disclosure.

Make sure your agent has a license for the kind of insurance that you need

Obviously, the first way to verify whether the insurer is not a con artist is if he has a license. And it’s not just a normal insurance license because insurance comes in a lot of forms. An insurer who has a life insurance license cannot sell insurance premiums for automobile.

Shop Around for Insurance Policies and Descriptions

Take your time in comparing at least three providers for a certain kind of insurance. They always come in different packages and offers. If you do this, you can have a comparative advantage of getting the best out of the selection and understanding their terms.

This is also to make sure that all of the data in their descriptions are consistent. Basing it on the referrals and reviews of some of your friends and other people, you can check whether such company has a good reputation or not.

Study the Insurance Claim

Through the use of computers and statistical analysis, you can now determine whether a certain claim is true or not. In here, a comparative analysis is being done comparing the claims and the expected values. Since the two methods are set apart in the derivation of the expected values, one can identify whether a claim is legitimate or not.

Most of the time, insurance companies send snail mail copies of your insurance coverage 10 days after you signed up. With this, you can study and re-assess what you’ve just availed for yourself. This must be a free period of assessment that entitles you to a refund if ever you decide to waive your subscription.

If you are suffering the consequences of a language barrier, then ask help from an immediate family or a trusted friend to explain to you what the coverage is all about. You have to understand that some of these perpetrators strategize to confuse their victims by taking advantage of their lack of English.

Report suspicious insurance claims to investigators

As what they say, there will be no suspect if there’s no victim. The most successful societies with almost zero crime rates are composed of united societal units who come together and report any suspicious activities going on.  But there’s a lot going for fraud, the second biggest financial crime in America just next to tax evasion.

If you have this gut feeling that someone has a high possibility of becoming fraudulent, report such instance automatically to the higher authorities for further investigation. Usually, these people come from larger groups of organized crime perpetrators and you can help in solving the crimes these people are causing.

If ever you have been a victim of an insurance fraud, you can contact the law enforcement agencies, state attorney general’s office or even the media. Don’t allow these people to continually victimize the rest of the society with their modus operandi.

You can protect yourself from the insurance fraud. You only have to educate yourself of your options.