Top 10 Most Common Insurance Scams by Individuals

Individuals are increasingly falling prey to insurance scams and getting caught in illegal activities. There are many insurance scams, from Worker’s Comp scams and car insurance scams, because there are so many types of insurance available in the United States and Canada. These scams end up costing the victims more than they should be paying for insurance. Here are the top 10 insurance scams that individuals most commonly fall for.

Car Insurance (scams 1 – 6)

Scams involving car insurance accidents are the most prevalent, but there are many more. These frauds include:

The paper accident – A criminal asks an auto repair or salvage business to take part in an accident that exists only on paper

Fictitious hit-and-run – The hit-and run never took place

Swoop and Swat – A criminal will swoop in front of another vehicle and stop, while an accomplice pulls towards the side of the target vehicle, stopping it from steering out of the way.

Sideswipe: This is a powerful tool that can be used to stop criminals from turning into intersections and lanes. To eventually reach the target lane, the criminal makes multiple left turns.

The friendly wave – A criminal waves at the victim in order to allow them to pass them in heavy traffic, and then accelerates quickly to cause a collision.

The “primary driver” scam is another subtler scam perpetrated by individuals. Sometimes, insurance for a car may cost less if there are multiple household members. Instead of listing the primary driver as the driver who is actually driving the car, the primary driver is the driver who is more affordable.

Insurance (scams 7 & 8)

Although it may sound like something out of a movie, this is what happens in real life. One spouse may take out a life policy for the other. Then they poison their spouse with antifreeze or some other substance to collect the money. Although the perpetrator is usually caught, it doesn’t stop those who believe that they will never be caught from trying.

It is a fraud to lie on life insurance applications. The insurance application requires that individuals provide certain information. This can affect the cost of the policy, which can be more damaging than helpful to the victim. It may help their pockets, but beneficiaries could lose coverage if the application is falsified.

Workers Compensation (scam 9

Workers’ Compensation is designed to assist someone who is injured while on the job. Some people who are entitled to Worker’s Compensation might lie to their doctor, or have the doctor discuss it with them. This allows them to draw longer benefits without needing to return to work. This is a common practice that can be costly and it is very expensive.

Scam – Health insurance (scam 10

Although health insurance is not as popular as the ones mentioned above, it is still possible to get it. The offering of fake health insurance is one example. Unsuspecting individuals or groups will call to offer health insurance, but they will receive nothing. They call the insurance company next and find no record of coverage.

These are the most common insurance frauds. While some people get away with the most minor of crimes, the more serious the crime, the more likely they will be to commit it. It is better to be truthful than to try to illegally get money from insurance scams.