Creed Anderson of ASA Insurance Comments on Insurance Fraud Case and Lists Consumer Friendly Tips

Recently, a man from Connecticut pled guilty to participating in a scheme to defraud auto insurance companies.

Online PR News – 31-August-2016 – Salt Lake City, Utah – Recently, a man from Connecticut pled guilty to participating in a scheme to defraud auto insurance companies. He was just one person in the conspiracy, which resulted in about 50 car crashes in the state over a three year period. ASA Insurance, provider of auto Insurance in Salt Lake City and throughout Utah, says insurance fraud is more common than people think.

Never lie on an insurance application he advises. If you don’t know the information find out before filling out the form.

The case in Connecticut involved car crashes which took place between April of 2011 and February of 2014. Frandy Dugue, one of the participants in the case, filed a guilty plea. He and the others involved filed fraudulent claims for both property damage and bodily injury with different companies after every crash. They received at least $10,000 and up to $30,000 for a crash.

Insurance fraud occurs when someone knowingly lies to receive money or other benefits they are not entitled to. To prove the claim of fraud, the investigator must prove both act and intent. The person involved may not have actually received the compensation. While most insured people won't be responsible for attempting to defraud their car insurance companies, they may be involved as victims in the scheme of another person. ASA Insurance, a Salt Lake City car insurance provider warns people to be aware of fraudulent claims and to report any suspicion of fraud.

A person may be involved in a collision which results in injury. The injuries may appear to be more severe than what the accident should have caused. Neck and back pain are often difficult to determine and treat, relying on the patient's personal report. This allows people to claim a more severe injury than what actually resulted. While some of these accidents are real, many others are staged. In other instances, someone may have a car stolen or damaged to collect insurance payouts. Anytime someone sees something suspicious in an accident, they should report it to their insurance provider.

Another version of insurance fraud is when someone lies on their application to get a lower rate. People often inflate their incomes and other information to present them in a positive light. While not all of these instances would result in a case of insurance fraud, it's important to be truthful. The person doesn't have to actually receive any benefits to be accused of fraud. Fraudulent claims impact everyone, not just the person involved. In fact, the Coalition Against Insurance Fraud has estimated the average insured person pays an extra $300 per year because of insurance fraud.

Creed Anderson of ASA Insurance in Salt Lake City, Utah says that insurance fraud costs everyone, including the insurance provider and the insured. "Never lie on an insurance application," he advises. "If you don't know the information, find out before filling out the form." In the case of filing a claim, it’s perfectly acceptable to say one doesn't remember rather than guessing or inflating the truth. Insurance fraud is a serious crime with serious consequences for everyone involved.