Insurance carriers report a yearly expenditure of over 40 billion dollars just in insurance fraud expenses alone. You may think this number does not affect you, but you are sorely mistaken! Fraud can cause you to pay anywhere from $400 to $700 more dollars each year on your insurance rate. Here are 4 forms of insurance fraud you should watch out for this year:
- Dishonest contractors. After natural disasters, these contractors will often come to neighborhoods and try to encourage you to restore your home right away. They will usually ask for money upfront, and then tell you your insurance will cover the services, which they later perform poorly.
- Fraudulent car crashes. A car full of trained liars will stop abruptly in front of you, causing you to rear-end them. The passengers will then fabricate stories of painful injures, and rack up thousands of dollars in insurance claims.
- Health insurance fraud. A dishonest person will fake a fall inside a business, and then sue for medical costs, and emotional distress.
- Business insurance fraud. This is when small business owners try to avoid the costs associated with workers comp, and will state that they employ fewer employees than they actually do.
If you have any questions about insurance fraud, please contact Phocus Companies, located in Pheonix!
