What is Car Insurance Fraud and How Common is it?
More than 1 out of 3 insurance claims for bodily injury from a car crash involves fraud. Fraud has become extremely common in the auto insurance industry, and it costs everyone. As the problem grows, penalties have grown more severe, and insurers and other agencies have devised various ways of detecting and preventing insurance fraud. Compare Car Insurance Companies How Does Car Insurance Fraud Happen? Approximately 90 percent of insurance fraud results from people padding insurance claims, policyholders adding extra damages and injuries to their claims, and claimants adding fictitious passengers when reporting an accident. The other 10 percent of insurance fraud results from organized rings of criminals who stage fake accidents. Criminals organize and actively solicit individuals employed in the car repair and salvage industries to work together in creating staged accidents. Crooked doctors, lawyers and even insurance agents often participate in this activity. Some of these accidents
