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Motor Vehicle Insurance Fraud – How to Deal with Bogus Claims


Motor vehicle insurance fraud is a huge problem being faced by almost every insurer in every state. At most times, this is not because of some lapses committed by company employees – as time passes, swindlers have become more and more skilled and creative in making their moves against an unknowing target.

However, most of the time, these cheats are found out by insurance investigators and reporters. However, finding them out is one thing. Dealing with the case is another.

Now, what can a provider do with a case like this?

Reject the demand. Of course, they can expect an appeal or a request to reconsider. But if the claim seems doubtful, they are given the right to deny it.

Normally, swindlers will not give up on the simple obstacle of their demand being denied. The next thing a company can do is to report the matter to an insurance commissioner or to whatever government agency the state has that is tasked to handle and investigate such cases. In this day and age where everything can be transacted online and through other electronic means, perpetrating motor vehicle insurance fraud is common. These government agencies are prepared to handle cases such as these.

Do not sensationalize. Often, you will be facing a lot of intrigue when denying a claim. Yes, there is always the court of public opinion. There is a good chance that the client is seeking attention to gain sympathy which is calculated to get you to back down and give in. Just keep in mind that this is just a temporary setback. Keep this issue in the down low and handle it quietly.

When faced with a motor vehicle insurance fraud case, do not be afraid of lawsuits. These will not even matter for as long as you keep your records clean and when you have a copy of all relevant papers, reports and other documents. In short, whatever a swindler has in his arsenal, you must have them as well. You can still wake up happy and rested every morning as long as you have your side in order.

Motor vehicle insurance fraud cases are a dime a dozen. Employ a seasoned insurance lawyer who has experience in handling at least a few related cases. He can help the company avoid controversies as early as in the claiming process.

Part of being in the coverage business is handling issues such as this. Although seasoned companies are used to the problem, those starting out may find it difficult and even discouraging to continue. With these tips, you can expect to carry on with the business despite the problems that go with it.