Skip to content
Home » Blog » Preventing Insurance Fraud – 10 Tips

Preventing Insurance Fraud – 10 Tips

Preventing Insurance Fraud – 10 Tips

Insurance is integral to long-term financial planning and security, especially if you have dependents. It is a way to plan for the unpredictable future and ensure the comfortable survival of our loved ones. However, it is safe to say that understanding complex insurance policies, providers, and terminologies is no easy task for an average person. William Schantz of Mid Atlantic Financial, LLC emphasizes that insurers can take advantage of this situation and commit fraud.

What is insurance fraud?

According to William Schantz , insurance fraud is any deception used to obtain an illegitimate insurance payout. Insurance fraudsters can be both individuals and organizations. They often target legitimate policyholders as well as insurance companies. There are many different ways fraudsters commit this crime, but some methods are more common than others.

 Tips to Prevent Insurance Fraud

1. Review your policy documents carefully and ensure you understand them before making a claim. If you’re not sure about something, ask your insurer for clarification.

2. Be cautious if you’re approached by someone offering to help you make a claim. Remember, if it sounds too good to be true, it probably is!

3. Don’t give out personal information to anyone unless you’re absolutely sure they are who they say they are. Safeguard and be cautious with sharing data like your policy number, date of birth, and credit card details.

4. Be wary of any unsolicited calls or emails from people claiming to be from your insurance company. If you’re not sure whether the communication is legitimate, hang up or delete the email and call your insurer directly to check.

5. Keep all documents and correspondence relating to your insurance policy in a safe place. This will help you keep track of everything and make it easier to spot any suspicious activity.

6. If you need to make a claim, try to do it yourself rather than using a claims management company. These companies often take a percentage of your payout, so you end up with less money in the end.

7. Be patient when making a claim. Take your time to gather all the necessary evidence, and don’t be pressured into making a decision before you’re ready.

8. If you’re not satisfied with the way your claim is being handled, raise your concerns with your insurer in the first instance. If you’re still not happy, you can make a complaint to the Financial Ombudsman Service.

9. Keep an eye out for any unusual activity on your insurance policy, such as unexpected changes or withdrawals. This could signify that someone is trying to fraudulently obtain money from your account.

10. Finally, remember that you can always ask your insurance provider for more information if you’re unsure about anything. If in doubt, it’s better to be safe than sorry!

Bottom Line

William Schantz believes that keeping these tips in mind can help protect yourself from becoming a victim of insurance fraud. If you think you may have been the victim of fraud, or if you suspect someone of committing insurance fraud, report it to your insurer immediately.

Get 30% off your first purchase