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Car Accident Fraud

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What is Car Accident Fraud?
Car accident fraud is committed in order to collect money from insurance companies for injuries or repairs that never happened and costs insurers billions of dollars per year. Fraudulent bodily injury claims usually consist of back pain or whiplash, as these types of injuries are difficult to dispute medically. 

How Car Accident Fraud is Committed

The accident victim is not the only person who can commit car accident fraud. Fraud is also committed when medical professionals inflate the cost of treatment or bill the insurance company for treatment that the patient did not receive. Body shops and repair shops that submit invoices for work that was never completed or that bill for new parts when used parts were used also commit insurance fraud.

Fraud is not limited to false bodily injury claims and repair bills. Underwriting fraud is committed when drivers lie on applications and renewal forms. A person who registers his or her vehicle in a location where the premiums are lower, a person who low-balls the stated mileage, and a person who states that a commercial vehicle is used primarily for personal use is committing insurance fraud. These premium rating errors also cost insurance companies; currently, 10 percent of personal auto premiums have incorrect information on the applications.

Car accident fraud is also committed when someone causes an accident intentionally. In these cases, the criminal stages the accident to make it look like the other driver's fault, for instance, by cutting in front of another driver and then purposely slamming on the brakes.

Victims of car accident fraud may suffer financial and emotional damage, as their lives are interrupted in order to deal with the consequences of the fraud. It is also possible for an innocent person to be physically injured or killed because of the criminal's fraudulent acts. 

Why is Car Accident Fraud Committed?

Car accident fraud is committed for the financial gain. Whether it involves a staged auto accident, false claims of injury, inflated medical bills, inflated repair bills or some combination, money is motivator. Not only are each of these types of fraud illegal, they also result in higher insurance costs and medical costs for all the rest of us.

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