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A 2022 study from The Coalition Against Insurance Fraud found insurance fraud costs Americans more than $308 billion yearly, and auto insurance fraud is a major contributor.
Some fraud rings involve insurance claims adjusters who authorize payment on the claims. [21] In the UK, the Association of Chief Police Officers estimated that 30,000 auto accidents were staged in 2009. [22] Insurance fraud may also include such actions as a pedestrian jumping in front of a car, then seeking compensation for claimed injuries. [23]
Understanding the claim denial letter and why an auto insurance company decided not to make a payout is the first step in determining the validity of a denied car insurance claim. Most instances ...
A staged crash, or crash for cash is when criminals maneuver unsuspecting motorists into crashes in order to make false insurance claims. The cars generally suffer little damage in relation to the large demand that is then fraudulently submitted. According to the Coalition Against Insurance Fraud, staged car crashes are a growing criminal problem.
Otherwise, insurance companies often reduce claim check cashing fraud by using two-party checks made out to both the insured and repair shop to ensure the funds are used for the damages claimed.
Tools and reports the NICB provides to combat car theft include VINCheck, "a free lookup service provided to the public to assist in determining if a vehicle may have a record of an insurance theft claim", [3] a Report Fraud hotline, [4] and two reports: Hot Wheels, which lists the most commonly stolen vehicles; [5] and Hot Spots, the locations ...
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