Bosworth & Associates, a Tyler, Texas insurance agency, prides itself on ensuring your financial security. One of our top priorities is a focus on honest service principles in all areas of insurance.
With so many insurance scams out there, we wanted to share some helpful information. Americans are bombarded with advertisements for health insurance, life insurance, car insurance, home insurance, and even pet insurance. It’s easy to become confused by what is legitimate and what is meant to deceive consumers.
At Bosworth & Associates, we are acutely aware that insurance fraud is a very real problem in today’s world, especially with the popularity of online insurance. It’s easy for scammers to appear reputable online when in reality, they’re out to commit fraud.
Insurance scams are a type of fraud and are one of the top financial crimes in the U.S.
Insurance fraud is found in all segments of the insurance industry. From life insurance scams to health and auto insurance scams, fake and fraudulent insurance claims, and predatory/fake insurance providers are crucial aspects to be aware of. Avoiding insurance scams can save you a lot in time, money, and trouble.
According to FBI estimates, insurance fraud costs the U.S. more than 40 billion dollars a year. This then translates to U.S. citizens, meaning the average family now pays $400-$700 per year to make up the difference.
Here’s a breakdown of some of the most common types of insurance scams, as well as helpful tips for how to avoid becoming a victim:
Auto Insurance Scams:
Statistics show that up to 20% of physical injury claims and 10% of auto accident claims are fraudulent. As an insurance holder, this means that someone could purposefully involve you in an auto accident to receive money. Your driving record could be affected, your insurance premium could go up, and it could cause you messy legal repercussions. Not only this, but fraudulent accident claims target large and small insurance companies and cause them to raise rates for their clients. Being aware and prepared can help you avoid becoming a victim of auto insurance fraud.
Tips for Preventing Auto Insurance Scams:
Health Insurance Scams:
Healthcare fraud is found in every segment of healthcare. The elderly are especially at high risk. With the cost of health insurance rising, consumers are looking for discount insurance but finding themselves left with very little when it’s needed.
Tips For Avoiding Health Insurance and Health Care Scams
When choosing insurance companies, it’s crucial for you and your family to find someone who will provide what they say they will. Take the time to do your research. It will pay off in the end.
If you are in the unfortunate place of having been the victim of fraud, it’s very important to report your experience and the perpetrators to your local insurance commissioner.
Despite the prevalence of insurance fraud, you don’t have to be a victim. Being aware of the risks and taking your time to research and make decisions accordingly, can go a long way to making sure you don’t fall prey to an insurance scam.
At Bosworth & Associates, we are here to help protect our customers. Please be aware of the scams out there and know that we are here to help answer any questions.