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How to Avoid Auto Insurance Fraud

Although there are ways to help lower your monthly premium, you can’t always counteract the rise in payments caused by fraud. Auto insurance fraud affects every policyholder and contributes to higher premiums every year. When one driver lies or submits a false claim, everyone else often pays for it. Unfortunately, many insurance holders commit some kind of fraud, even unintentionally. Any lie on your claim or application is a fraud, and that could affect your premium and everyone else’s premiums. Avoiding insurance fraud is the best way to help keep everyone’s monthly payments as low as possible.

Auto insurance fraud affects every policyholder and contributes to higher premiums every year, but you can help prevent it.

What Counts as Auto Insurance Fraud?

Recognizing insurance fraud isn’t always easy. Many drivers think that a small lie on an application or claim won’t affect the process that much, but it can cost other insurance holders thousands of dollars a year. Common examples of insurance fraud include:

  • Lying about where you live on an insurance application
  • Including pre-existing damage on an insurance claim
  • Lying about your previous driving record when applying for insurance
  • Falsely reporting a theft

Some drivers may try to lie on their applications or claims to help reduce their own premium or increase their claims payout. However, this often leads to increased payments for everyone else. Even if one driver commits fraud, they’re still likely getting higher payments due to the fraud of someone else.

Tips for Avoiding Fraud

The best way to avoid auto insurance fraud is to always be as honest as possible when applying for insurance or submitting a claim. If you’re having trouble affording insurance or getting a claim approved, there are resources available. MAIF can help you find affordable Maryland auto insurance and will work with you to help you understand the claims process. Getting help from an outside source is always better than trying to lie your way through the system.

How to Identify Fraud

As a policyholder, it’s also your responsibility to help keep an eye out and report fraudulent behavior. Keeping other drivers honest can help keep your monthly payments low. Drivers may try to cause an accident to cover the cost of unrelated damage or injuries. If you see someone practicing unsafe driving methods, do your best to avoid them. If you suspect someone is committing insurance fraud, you can submit an anonymous tip to the NICB Hotline (1-800-TEL-NICB) or the Maryland Auto Insurance Hotline (1-800-500-0333).

Get Help With Auto Insurance Questions Today

Many drivers commit auto insurance fraud unknowingly simply because they don’t know the process for insurance claims or applications. Staying aware of the policies and systems is the best way to avoid fraud. At MAIF, we’re here to help all Maryland drivers stay safe and honest. If you have any questions about your auto insurance policy, contact us today.

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