3 Things Everyone Should Know About Insurance Fraud

Insurance fraud is an exceptionally serious matter, and there are tens of thousands of cases of insurance fraud every year. Because of how serious of a matter insurance fraud it is important to know what the consequences of insurance fraud are, that some common actions are insurance fraud, and how committing insurance fraud can affect a person in the long run.

The consequences of insurance fraud

The first thing to know about insurance fraud in Oklahoma is the consequences. Being caught committing insurance fraud will almost always require a person to return the full sum of money they received from a claim. It can also result in a person going to jail for fraud or felony fraud, and a person will almost always be sued for the amount of money it cost the insurance company to catch the fraud and resolve it. This amount can end up being exceptionally large, and a person will have little legal recourse.

Some common actions that are insurance fraud

A lot of persons will commit insurance fraud while pretending that they simply are not. Some common types of insurance fraud include claiming that more items were damaged or stolen than actually were. A lot of persons will claim that they lost an expensive stolen item like a computer when filling out a claim, when they actually never owed the item. These simple actions are considered fraud, and a person will face full penalties for committing them. In addition, it is considered insurance fraud if a person intentionally damages an item or lies about how the item was damaged.

How insurance fraud will affect a person in the long run

In addition to the jail time, legal cost, and lost money that come from being caught committing insurance fraud, it can also have a huge effect on a person for the rest of their lives. Most insurance agencies will simply not work with a person who has been caught committing insurance fraud.

If they do the offer insurance, they will charge exceptionally large premiums, limited packages, and they will investigate every claim made that person. This can be exceptionally bad when a form insurance fraudster decides that they want life or medical insurance, and it is important to remember that a person has to legally purchase auto insurance whether a convicted fraudster or not.