Insurance is a necessity of our driving culture. If you want the luxury of driving your own car, you are legally required to carry insurance coverage to cover any harm that may come to anyone as a result of a car accident. People can go their entire lives and not make an insurance claim, whereas an insurance payment can be a lifesaver after an accident where there is damage to either your or another person’s vehicle. There are also people who ride in between the lines of law abiding respectful insurance payers, and those who make fraudulent claims in order to claim money not legally owed to them.
You see it all over the world, people scamming and stealing in order to make quick and dishonest money. It’s no different in the world of car insurance. Car insurance fraud is done when a person make a claim to their insurance company that is inaccurate in order to obtain payments. This can be done in a few ways:
Lying about the way a loss occurred
For instance, claiming their vehicle was stolen when it actually was discarded by the owner in some way, or even sold off book. If the owner claims it was stolen and no evidence of the car is ever found then the owner could very well be entitled to an insurance payment.
Filing fraudulent automobile accident or damage claims
It’s not unheard of for a person to file an accident or damage claim and there be nothing wrong with the vehicle whatsoever. It’s up to the insurance company to prove that the claim is fraudulent and sometimes the fraudulent cases slip through the cracks and obtain payouts. This is why it’s helpful for insurance companies to hire a private investigator from time to time to investigate the actuality of a claim.
Including previously existing damage to a vehicle when submitting a claim
There very well could have been an accident on a vehicle, but perhaps there was already existing damage that the owner has claimed occurred during the submitted accident so as to obtain funds to have it fixed. Proving this would require the help of a private investigator to investigate the possibility of pre-existing damage.
Receiving payments for treatments not received
Auto insurance can also cover damage to the body as a result of a car accident. People can fraudulently claim they received treatment as a result of a car accident but in fact no treatment was given. For example, the insurance company could be making payments for physiotherapy sessions that the claimant never attended. Having a private investigator check up on any potential scammer is the best way to ensure payments are being made in good faith.
Ontario is home to the most auto insurance fraud in Canada. The Smith Investigation Agency offers high quality investigative services for insurance companies to minimize damage due to misrepresentation. Please get in touch to learn more about our private investigation services for insurance litigation clients.