With an increased attention recently on claims fraud in the insurance industry, we thought it useful to provide a list of the possible “Red Flags” one may come across when handling an auto claim:

·     Loss result of a single car accident or an unidentified third party

·     Police report indicates damage less severe than damage claimed, or damage is inconsistent with description of loss

·     The vehicle was a previously recovered theft, was subject of a prior major collision, or was rebuilt 

·     The insured avoids using the U.S. mail to correspond concerning the claim or prefers to hand deliver documents

·     The insured’s mailing address differs from the policy address

·     The collision was not investigated by the police or an over the counter report is made for an accident resulting in multiple injuries and/or extensive physical damage

·     Medical claims are extensive, but collision is minor with little physical damage to vehicle

·     Minor accident produces major medical costs, lost wages and unusually expensive demands for pain and suffering

This is just a short list of possible fraud claim indicators.  The presence of one or more of the factors mentioned above does not necessarily mean the claim is fraudulent.  It simply means you should be aware and there may be a need for further investigation into the claim.