5 Most Common Insurance Scams

Insurance Fraud in San Diego, CA

Despite the best efforts of insurance agencies, insurance fraud continues to be rampant. Because fraudulent claims can slow the process of legitimate claims, increase premiums, and put others in danger, the staff at Tri-Star Insurance wants to keep the innocent educated with information on 5 common insurance scams.

1. Rear Ending

Also known as “crash for cash”, the scammer in this situation will brake to a sudden stop or cut off another vehicle, causing the driver behind to crash into them. In most cases, it’s considered the fault of the victimized driver, whose Vista car insurance is then liable for the collision and any claimed injuries.

2. Home Damage

Following a severe storm, some fraudsters make damage claims against insured structures, often exacerbating the damage or even making claims for nonexistent damage, hoping busy Vista homeowners insurance inspectors never show up. Others show estimates from fraudulent contractors and claim a settlement when untouched by a nearby storm.

3. Medicare Fraud

Government programs such as Medicare and Medicaid cost taxpayers billions of dollars each year in fraudulent claims. Fraudsters sometimes steal a person’s medical data and use it to make false claims. Even legal medical clinics have been known to make claims for procedures that were never performed. As the number of seniors grows, instances of fraud are likely to increase.

4. Rental Property Scams

In this case, scammers rent a home and take out a policy to cover valuable possessions, then stage a fire or break-in and claim high-priced items were lost, producing forged receipts. Others might actually buy the items in question, sell them to recoup their investment, and then make an insurance claim.

5. Faked Death

The most infamous form of life insurance fraud is taking out an insurance policy on an individual and then faking that person’s death. Often the “deceased” already has a new identity prepared and simply has to move away. The beneficiary goes through the pretenses, sometimes going as far as holding a fake funeral, and moves away when the check is cashed.

To learn more about insurance scams and how they can affect you, contact the insurance experts at American Tri-Star. We offer affordable auto, home, commercial, and health insurance Vista residents trust. To speak with one of our friendly agents and to receive a free quote, call 760-758-1600 today.