Chicago, IL (PressExposure) July 30, 2009 -- /1888PressRelease/ A deceitful scheme to make money, insurance fraud costs the nation over $30 billion a year. While everyone is at risk, there are ways to protect yourself and your family from being hurt, both financially and physically. The first step in doing so is understanding what insurance fraud consists of.
âInsurance fraud is when someone deceives an insurance company to collect money,â the InsuranceAgents.com article, The Dangers of Insurance Fraud, states. âThey can do this by staging car accidents, setting fires, or even committing murder to collect life insurance. There are different types of insurance fraud: soft and hard.â
Soft insurance fraud occurs when policyholders lie to their insurance companies in order to lower their premium. Hard insurance fraud, however, is a much more serious offense, especially when the life of another individual is put in jeopardy. In most cases, hard insurance fraud occurs when someone purposefully fakes an accident or theft in order to receive money from their insurance company.
While these instances are an everyday occurrence, there are certain steps individuals can take in order to protect themselves. Some include examining your bills regularly, never signing blank insurance forms and not letting anyone know your insurance identification number.
Fortunately, for those who do fall victim to insurance fraud, the article states that there are things you can do to deal with the situation: âWhen calling to report insurance fraud itâs important to be prepared so make sure that you know the full details of the insurance fraud scam, dates, names, the organization involved, which insurance company or companies were effected, amount of money that was lost (donât worry if you donât know or arenât sure about the amount), documents and other materials, and anything else that could be helpful.â
With a team effort, insurance fraud can be exterminated. Numerous agencies and organizations are available to help victims cope with their losses. If youâve been a victim or want to prevent insurance fraud from happening to you, get involved with one of these organizations right now.
Staff contribution: Rafael Onak
Visit InsuranceAgents.com for more information.