Auto Insurance Fraud
Auto insurance fraud involves intentionally making false statements or omissions to an insurance company for financial gain, such as staging accidents, inflating claims, or falsifying information to obtain lower premiums or larger payouts.
Here’s a breakdown of common types of auto insurance fraud in NYC:
- Staging Accidents: Intentionally causing an accident to file a claim for damages and injuries.
- Inflating Claims: Exaggerating the extent of damages or injuries to receive a larger payout.
- Falsifying Information: Providing false information about the accident, vehicle, or driver to obtain lower premiums or larger payouts.
- Reporting a Car Stolen: Falsely reporting a car as stolen to collect insurance money, even if the car has been sold or destroyed.
- Medical Providers Billing for Unnecessary Services: Medical providers billing for services that were not provided or for unnecessary procedures.
- False Endorsements: Providing contact numbers to alleged five-star repair shops, lawyers, and doctors that are actually participants in the fraud scheme.
- Soft Insurance Fraud: Exaggerating damages when a legitimate accident occurs.
- Hard Insurance Fraud: Staging an accident for the purpose of making an insurance claim.
- Criminal Penalties:
Insurance fraud is a crime in New York, and those convicted can face jail time, fines, and restitution.
- Civil Penalties:
Insurance companies can pursue civil lawsuits against those who commit fraud, seeking to recover damages and penalties.
- Increased Premiums:
Insurance fraud costs all drivers in the form of higher premiums, as insurance companies must factor in the cost of fraud into their rates.
- Loss of Trust:Insurance fraud erodes public trust in the insurance industry and can make it more difficult for legitimate claimants to get fair treatment.
Contact Us
If you or someone you know has been charged with any crime within a diamond fraud scheme, contact The Blanch Law Firm at (212) 736-3900.
