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How Insurance Companies Spot Fraudulent Claims

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Fraud costs car insurance companies a lot of money, but it also affects motorists. Insurers would lower their rates if motorists would file fewer claims, and fraudsters are helping to ensure that this is not the case. This is why insurance companies are always on the lookout for fraudulent claims. Some of the red flags that they watch out for include:

Incriminating Social Media Posts

These days many people seem to live their lives on social media, and insurance companies are alert to this fact. You would think that a fraudster would not post their illegal deals online, but you would be surprised that some people do this. They may not exactly post that they got a false claim paid out, but their actions may point to fraud. For example, a person who claims hail damage on their car, but was away with their car (as indicated on their online posts) on the day of the storm may be lying about the damage.

Patterns Indicating Personal Injury Mills

Did you know that auto insurance fraud can occur even without the "injured" motorist's knowledge? Consider a case in which you are injured in a car crash and sustain minor back injuries, but you aren't aware of the extent of the injuries. You consult a general physician who refers you to a chiropractor. The chiropractor "treats" and charges you for nonexistent serious injuries. You then consult a lawyer who then presents a large claim to the relevant insurance company.

Those who engage in such practices rarely do them once; they often repeat the same thing with different clients, thereby creating a pattern. Insurance companies are always on the lookout for such patterns that alert them to injury mills run by fraudulent legal and medical practices.

Suspicious Loss Indicators

With a few exceptions, human beings react very similarly to emotional situations. There are certain patterns and indicators that insurance companies look out for when processing claims. For example, your insurance company is likely to be suspicious if:

  • You increased your coverage shortly before submitting the claim
  • You have handwritten receipts for repairs and treatments
  • You are calm and unflustered despite submitting a large claim

Of course, some of these may not really indicate fraud. For example, you may just be a naturally calm person without any ulterior motive.

As you can see, auto insurance companies have different ways of spotting fraudulent claims. Therefore, you shouldn't be tempted in submitting a claim unless you are sure it's genuine. If it's not illegal but it's not exactly genuine or true, then you shouldn't submit it. Visit an auto insurance company like Senella Insurance Group for more information.