If you think that only insurance companies are affected by fraud, think again. Insurance fraud costs an estimated $30 billion every year, and that costs insurance customers
as well as insurers. The average household could be paying as much as $300 extra every year because of fraud. Bottom line: Fraud rips off honest people like you and me because it results in higher insurance costs for all of us.

Here’s how you can fight fraud — and help keep your insurance costs down:

• Look out for staged auto-accident scams. Criminals deliberately cause accidents so they can submit fraudulent claims against honest drivers. The best way to avoid such situations is to drive defensively and not tailgate. If you are involved in an accident that seems suspicious, take photos and get information on the other driver and all passengers.
• Be aware of high-risk locations for vehicle theft. Contact me to discuss the benefits of anti-theft devices.
• Use only licensed and insured contractors or repair facilities.
• Report suspected fraud. Contact the Farmers Special Investigations Unit hotline at (888) 662-6616 or the National Insurance Crime Bureau (NICB) hotline at (800) 441-6282.

This entry was posted on Tuesday, September 26th, 2006 at 4:49 pm and is filed under Insurance, Auto. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.