How to avoid fraud

Fight fraud by educating yourself. We can help you recognize fraud (PDF, 1.1MB) ( so you don't become a victim. You can help us by reporting fraud so we can help stop it.

Insurance fraud takes many forms

Fake insurance companies defraud consumers by collecting premiums for bogus policies, with no intention of paying claims. These so-called companies might offer policies at costs that are significantly lower than competitors’ prices or they might be difficult to reach by phone — if there's a listed phone number at all.

Agents and brokers have also deceived consumers for personal gain. If you do not receive an insurance ID card or a copy of your policy in a timely manner, this could be an indication that your agent or broker is scamming you.

Consumers can also be guilty of insurance fraud. The National Insurance Crime Bureau estimates that 10 percent of all insurance claims filed are fraudulent, adding $200 to $300 a year in higher insurance premiums for the average household. Fraud costs Americans billions of dollars each year.

Insurance fraud facts*

  • Insurance fraud occurs when anyone tries to make money from insurance transactions by deception.
  • Insurance cheats range from organized criminal enterprises, to unscrupulous doctors and lawyers, to dishonest body-shop operators, to people in the neighborhood.
  • Insurance fraud is the second most-costly white-collar crime in the U.S., behind tax evasion.

*Source: National Insurance Crime Bureau

Avoid common frauds and scams involving:


Updated 04/04/2014

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