Consequences. Insurance fraud is an increasingly serious problem for both insurance companies and the people they provide policies to. If insurance companies know what to look for, this provision gives them the opportunity to head-off a fraud by simply not agreeing to cover the vehicle. 2. If the student decides to change or alter their grades after receiving the transcript, he or she can be found guilty of insurance fraud and be subject to all of its penalties. As with all other types of insurance fraud‚ Pennsylvania considers it a felony. It’s your turn to save a little money. For health care insurance fraud, the perpetrator would be facing a sentence of up to $150,000 in fines, along with a stay in jail of 3-5 years. Is Faking Grades for Auto Insurance Considered Insurance Fraud? Sen. Schumer’s bill, known as the Cheaper Car Insurance Act of 2010, was designed primarily to target organized crime rings who defrauded car insurance companies by staging fake accidents so they could file injury claims. There has been a huge rise in fraudulent personal injury claims in recent years, and it can be hard to obtain a conviction for car insurance fraud. For example, consider any one of the personal injury lawyers whose TV commercials you’ve seen promising you “all the money you deserve.” Lawyers are required by both the law and their professional fiduciary oaths to present cases truthfully and factually. Mrs X was prosecuted for car insurance fraud, after having been involved in two staged accidents in which it was accepted she had received no money. Specifically, a person commits insurance fraud when he or she: In Pennsylvania, a person is guilty of insurance fraud if he or she acts in one of several ways specified in the statute "with the intent to defraud" another person, whether it be an agency, insurer, or self-insured individual. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Another area of concern for insurance companies is that of personal injury claims. It can range from overstating the value of damaged or lost items or not declaring information that is known and relevant to a claim, through to the activities of highly organised criminals coordinating large and complex false claims. The first had been cunningly set up. Written by Burning it out it to claim the insurance (or paying someone else to do it) becomes an attractive option in some cases. Insurance fraud is one of those areas that can be prosecuted on multiple levels. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. A consumer might commit insurance fraud by submitting a claim based on a false, exaggerated, or deliberate injury or loss. Keep reading to discover the most common types of insurance fraud in the United States, including types of car insurance fraud that may affect you. Federal laws regarding car insurance fraud are uniform across the country. Given the amount of money to be made from staged accidents, many remain undeterred by the relatively low penalties involved. Even if convicted, they are likely to escape with minimal prison terms, simply because of the limits placed by law. Comparison shopping should be easy. Does Auto Insurance Cover Friends Driving My Car? However, in felony cases, insurance investigators will examine everything far more carefully, which means more convictions for car insurance fraud. Enter your ZIP code below to view companies that have cheap car insurance rates. This motor insurance fraud case study is an example of car insurance fraud. The masterminds are obviously the most important people involved in these crimes and, as such, face the stiffest fines and most jail time. Fake insurance claims soar in 12 months. @media (max-width: 40em) { According to CriminalDefenseLawyer.com, it’s possible at the state level to prosecute cases of insurance fraud both in criminal and civil courts. Posted March 20, 2018 by Alexa Goyette Car insurance fraud occurs when someone deceives an auto insurance company in order to benefit financially. On the other hand, hard fraud cases are illegal throughout the US and punishable with jail time. 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