Insurance Fraud

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Insurance Fraud

Insurance fraud is when an individual provides false information during an insurance process in order to obtain a more advantageous outcome. Insurance fraud ranges from completely false claims, such as selling a car for cash and then claiming it was stolen, to “exaggerations,” such as claiming that repair costs after a car accident were much more expensive than they actually were. Insurance fraud happens before a claim, too. For example, not disclosing that your home has knob-and-tube wiring when applying for home insurance (in order to get a lower premium) is also considered fraud. For every type of insurance, there are people who will attempt to take advantage of the policies through insurance fraud. Insurance fraud can be prosecuted by law, with punishments and degrees of severity varying from state to state.


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