No one likes paying their insurance premiums. It’s a universal sentiment. I’m an insurance agent and I don’t jump up and down with glee when the envelope arrives in my mailbox either.
However, going without it is completely crazy. It’s money well spent. It’s what puts your life back together when the worst happens.
Why are rates what they are? What impacts the shared price that we pay? What can we do to help keep those costs in line?
Insurance fraud is a piece of this puzzling puzzle. Believe it or not, you probably know someone who has committed the crime at some level! Some of you might be comfortable reporting it. Others might hang back because you don’t want to get someone else in trouble. Others may not even be sure about what it includes.
You own your car and receive a check to repair the dented quarter panel…is it fraud if you don’t repair it? No. Surprised?
You get your buddy at the shop to “inflate” the bill so that your deductible is covered. He’s just helping you out, times are tough. Fraud? You bet.
You’re asked about the residents within your household when you apply for auto insurance. You fail to mention your brother, Bobby, who has an extremely colorful record. He’s gone through a rough time, he is short on cash, he only drives your cars a few days a week to get to work. Fraud? Yup.
You have an apartment in Philly since 1984. Yet, you report your residence to be your parents’ address here in Macungie. You visit every 6 months, it feels like home, always will. Gotta save where you can, right? Fraud? Oh yeah, baby.
You’re collecting lost wage benefits because you can’t work, yet you’re able to build extensive outdoor projects in your back yard. Is that fraud? Possibly.
There are many situations that fit the gray zone. And plenty more that are clear as black and white. But the bottom line is that every time someone commits insurance fraud, it raises the rates for the rest of us. Premiums are based on claims paid and some other stuff, too. When fraud comes into the picture, everything goes out of whack.
Check out this website, it’s interesting. It gives you a good idea about what is and what isn’t fraud. It helps you understand how a moment of being stupid can change your life forever. It shows you how and when to report fraud.
Let me know what you think!