For most, it probably seems like the insurance company is the only one to lose out on money when insurance fraud is committed. But that couldn’t be more wrong. It’s estimated that the American family pays an average of $950 in increased premiums each year to cover the costs of insurance fraud. This same increase applies to business, which in turn, have to increase prices for consumers.
The cost of insurance fraud is therefore on the shoulders of everyone, not just insurance companies.
So does fraud happen when the hardened criminal plots an elaborate scheme to milk companies for millions? Or is it the average citizen who tells a small lie for more return on their insurance claim?
That hardened criminal is an example of hard fraud. That average citizen is an example of soft fraud. But ultimately, both are guilty of insurance fraud. Whether it’s staging an auto accident, filing a false medical bill, or exaggerating a claim, all parties are equally accountable for insurance fraud. Insurance is intended to indemnify people, bringing them back to normalcy after a claim is filed. It was not created to increase people’s wealth.
Nonetheless, it’s entirely too common for people to justify insurance fraud in their head. There’s the assumption that insurance companies are making millions off of people, so why not get a fair share? Unfortunately, there’s many flaws in that logic. As already stated, the cost of insurance fraud always gets passed back to the consumer, so ultimately, the real victim of insurance fraud is consumers.
Make sure you have sufficient coverage for your
Regina Home Insurance by calling the agents at
Heritage Insurance today. Don’t talk yourself in something you may regret. Get covered today.