What You Don't Know Does Hurt You
Source: AARP.org | | June 21, 2004
None of us like getting ripped off. That's no secret. But here's something you may not know: Each and every one of us is getting ripped off every day.
Who's stealing our money? Criminals who commit insurance fraud.
We're all victims because we pay for this crime through higher insurance rates. It amounts to about $200 to $300 in higher premiums for the average household.
The Texas Committee on Insurance Fraud, in cooperation with the Texas Department of Insurance, National Insurance Crime Bureau and AARP Texas, are out to expose this ugly secret and stop insurance fraud, helping all of us keep our money where it belongs—in our pockets.
To start, we must understand who commits insurance fraud and why they do it. Insurance criminals are not easily identifiable. They typically don't carry weapons, but they can be just as lethal as other criminals. Insurance criminals come in all forms—organized fraud rings, dishonest doctors and lawyers, unscrupulous, vehicle-repair facility operators and people in your neighborhood who pad a claim.
Regardless of their guise, insurance criminals are motivated by one thing: money. It's all about greed and taking what isn't rightfully theirs.
Seniors are a part of the solution. You can do two things to protect yourself from becoming an insurance fraud victim. First, learn more about these crimes; secondly, if you suspect insurance fraud, report it.
Here's what to watch for. To avoid becoming a victim while driving:
- Be sure there's plenty of distance between your vehicle and the one in front of you. In the "sudden stop" scam, criminals will abruptly stop for no apparent reason, causing you to rear-end them.
- Call the police to an accident scene and get a police report with the officer's name, even if the damage is minimal. If the report describes damage to the claimant's car as a nick, it's harder for criminals to damage the car later and try to collect a larger claim.
- Avoid "runners" who appear at an accident scene, trying to direct you to unscrupulous doctors and attorneys.
- Be wary of physicians who insist that you file a personal injury claim after an accident, especially if you are not hurt.
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Other Resources
- The following are phone numbers to report insurance fraud:
- Texas Department of Insurance Fraud Hotline: 1-888-327-8818
- National Insurance Crime Bureau: 1-800-TEL-NICB
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