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How to Avoid Insurance Fraud

An insurance broker in Omaha was caught defrauding individuals who spoke little English by selling them false car insurance.  The scheme was performed by issuing a temporary insurance card, demanding a down payment from the victims, then never processing the insurance application the victims had filled out.

Because the insurance cards issued by the criminal were valid for a few days following the crime, the victims would be able to register their vehicles as normal and never know that their insurance policy had failed to be activated until it was too late. The fraudulent insurance broker was caught and arrested by authorities, but his intelligent scheme which garnered him hundreds of thousands of dollars is just one example of the many insurance fraud models that are in the world today. 

Insurance fraud in the United States continues to grow and has become one of the largest white-collar crimes facing the nation. Because of this, every American should renew their vigilance against insurance fraud of any form.

People can become more aware by remembering a few of the following tips concerning insurance fraud:

  • Be skeptical of an amazing deal or one that sounds too good to be true.  This doesn’t mean that such spectacular deals do not exist in the insurance industry, but it can still be a red flag that should be further evaluated.
  • Take all notices from the insurance company seriously.
  • Never agree to an insurance deal you have felt pressured into.
  • Keep all documentation.
  • Ask to see all qualifications and certifications of the insurance agent with whom you are working.
  • Make sure that all forms are completely filled out before signing them. Do not sign forms with blank fields or before you have read over the document thoroughly.

With the above tips, an individual and a family will be able to better guard themselves from the dangers of insurance fraud. 


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