Insurance scams cost you money!

Insurance scams happen every single day and cost honest insurance customers millions of dollars every year. From people burning down their own homes and cars and creating false claims to faking injuries  at work and claiming disability insurance to live on, the insurance scams vary as much has the people themselves. These insurance scams are one of the biggest reasons your insurance premiums keep going up, year after year and why cheap insurance no longer exists.

Insurance Scams Money
Insurance scams cost everyone money.

Insurance companies also spend millions of your premium dollars fending off false claims generated from these insurance scams but unfortunately in many cases, the scams go unnoticed and the claims are paid out as though they were legitimate. It is a big problem and not one that is going away anytime soon.

The cost of the insurance scams vary from small, as the case may be in a vehicle collision where the scammer complains about a whiplash after-effect to extremely large, as might be the case in where a business  owner decides to burn his business for the insurance money. Sometimes there insurance scams are very hard to prove and make more sense to just pay out. Unfortunately, these bogus insurance scam claim expenses get passed on to you, the legitimate insurance customer.

Insurance Scams Thief
Insurance scams are out there...

As I mentioned above, it cost money to investigate and uncover an insurance scam. The bigger the scam, the more money is required to investigate it. Should an insurance company choose to spend the money to investigate the scam in depth and come to the conclusion that no insurance scam can be proven, the claim is paid out and the cost of the investigation is lost as well, which is often the case. This type of practice further drives up your cost for insurance. It is truly a balancing act, which claims deserve investigating and which do not.

While insurance scams will continue to happen, the only thing we can hope for is that the insurance companies develop new, more high tech investigation techniques and maybe start to lower our costs and reverse the current trend of just hiking insurance premiums to the sky. Then, perhaps the insurance scams will lessen and people can pay something closer to what insurance should actually cost.

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