Cheating Insurance Companies: Don’t Even Think About It

By: Elizabeth Newberry
Submitted: 2007-01-17 16:17:23
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Do you know anyone who’s been involved in an automobile accident and suddenly needed to wear a neck brace everywhere…except when no one else is around? Do you know anyone who’s been injured on the job and, while he can’t make it to work, can still accept his best friend’s invitation for a weekend of skiing? These people are cheating insurance companies, and cheating insurance companies, also known as insurance fraud, is illegal.

Sadly, cheating insurance companies is a fairly common practice. People cheat other people’s insurance companies by suing for injuries that didn’t occur; hence the need for the neck brace. People cheat their own insurance companies, or the insurance companies of their employers such as worker’s compensation, when they claim to be too injured to work but are actually well enough to do everything else.

People who cheat insurance companies aren’t just cheating the insurance companies; they’re also cheating everyone else who owns an insurance policy through that income. You see, insurance companies are so fed up with, and drained by, those who cheat them that the cost of insurance policies raises. That means while these people are busy cheating insurance companies, honest people are busy spending more money on insurance than they should have to spend.

Since cheating insurance companies has become such a fairly common practice, many insurance companies are cracking down by investigating the “injuries” much more thoroughly than ever. Some insurance companies hire private investigators to keep surveillance on those they think may be cheating their company. This can be a pretty effective way of cutting down on insurance fraud since most people don’t expect an insurance company to go out of its way and fork over even more cash to have them investigated. Therefore, the people who are actually cheating the insurance companies freely enjoy their newfound money or free paychecks and make it much easier for the insurance companies to bust them.

Article source: Expert Articles

Most Recent Articles in Insurance category

  • Understanding Mortgage Terms - By: Liza Arwati
    In order to get the best deal on your home mortgage loan, it is a good idea to understand certain terms that are specific to the real estate and financial industry. The following are the common terms you're going to hear when applying for your first mortgage.
  • How to Shop for Auto Insurance - By: Justin Narin
    Looking for an affordable and reliable auto insurance provider? Learn valuable techniques to finding and choose a great provider.
  • Renters Insurance: Things to consider - By: Liza Arwati
    Most renters insurance offers full coverage to protect your possessions from flooding, fire, theft, vandalism and many other types of risk. Therefore, it is advisable to have a separate insurance to protect your belongings from damages and losses. It even claims for the injuries caused to the people who visit your home.
  • Get Discount on Homeowners Insurance - By: Liza Arwati
    It might a good idea to get it all together. Many insurance companies that sell homeowners insurance also provide auto insurance. They may offer a discount if you buy both policies from the same company. The discount could be as high as 10 to 15%. Be sure to verify that the combined price is lower than buying the different coverage from different company.
  • The Basic of Homeowners Insurance - By: Liza Arwati
    Homeowners insurance is an insurance policy you buy from the insurer to protect your house against theft, storms, fire, flood and all other causes explained in your policy. It allows you to transfer the risk associated with owning a home to the insurance provider and give you a peace of mind that your most valuable asset is, your home, is protected.
  • How to Budget on a Variable Income - By: Alex Rodriquez
    It can be challenging to create and keep to a budget when you know exactly how much money you have from one week to the next, but when you have variable income it can seem impossible.
  • A Brief History of Loans - By: Alex Rodriquez
    Apart from your house, your car is likely to be the biggest investment you make. As with mortgages, the high cost of the purchase will often require you to take out a loan to pay the vehicle off.
  • Medieval mercantile fairs - By: Alex Rodriquez
    Medieval mercantile fairs were one of the primary inspirations for the rise of banking in Medieval Europe. Merchants, or money lenders, would issue documents that could be redeemed at other fairs in exchange for hard currency.
  • The Origins of Banking - By: Alex Rodriquez
    Making the choice to get in shape is one that will pay off greatly in the long run. However, for many, this choice also means that they will be paying a large sum of money out of their pocket for gym memberships and personal trainers to actually get in shape.
  • California Healthy Families - By: Charles Peter
    Health is a very important issue today. In the present scenario, health insurance is a must. With soaring medical costs, we cannot afford to be without medical insurance.