How To Report Auto Insurance Coverage Scams

Car insurance fraud is a costly issue, with scams ranging from staged accidents to false injury claims and counterfeit repairs. If you suspect insurance fraud, you can report it to various organisations, including the National Insurance Crime Bureau (NICB), the Coalition Against Insurance Fraud (CAIF), your local or state police, and your insurance company. It is important to gather evidence, such as accident details, vehicle and occupant descriptions, and any suspicious behaviour, to support your report. Being vigilant, aware of common scams, and cautious when dealing with unsolicited services can help you avoid becoming a victim of car insurance fraud.

Report to the National Insurance Crime Bureau (NICB)

The NICB is a non-profit organisation dedicated to preventing and deterring insurance fraud and crime. It has over 1,200 member property-casualty insurance companies and offers fraud resources and education for law enforcement organisations, public agencies, and prosecutors.

How to Report a Scam to the NICB

You can report a car insurance scam to the NICB by texting "Fraud" to 847411 and including any details about the scam. You can also report a scam via the NICB website.

What to Include in Your Report

When reporting a car insurance scam, be sure to include as many details as possible, such as:

• Details of the accident
• Any identifying details like names or insurance policy numbers
• Car descriptions or license plate numbers
• Physical descriptions of those involved
• Vocal characteristics for phone scams
• Any specific reasons why you suspect fraud

What the NICB Does to Combat Fraud

The NICB combines intelligence and analytics, investigations, and learning development to combat insurance fraud and theft. It also works with insurance companies, consumers, and law enforcement to bring specialised experience, knowledge, and unique datasets to the fight against insurance fraud.

Types of Car Insurance Fraud

Car insurance fraud can take many forms, but ultimately, the goal is to extract more money from an insurance provider. Some common types of car insurance fraud include:

• Counterfeit airbags
• Staged accidents
• Agent fraud
• Windshield replacement rip-offs
• Towing scams
• Premium evasion

Contact your insurance company

Contacting your insurance company is a crucial step to take if you suspect you are the target of an insurance scam. Here are some detailed instructions and considerations to keep in mind when reporting a potential scam to your insurance company:

• Be vigilant and act promptly: If you suspect insurance fraud, it is important to act quickly. Contact your insurance company as soon as possible and provide them with as much information as you can. The sooner they are aware of the situation, the sooner they can start addressing the issue.
• Document and gather evidence: Before reaching out, ensure you have documented the incident comprehensively. Take photos or videos of any damage, the accident scene, and the other vehicles involved. Note the extent of the damages and the number of passengers in other vehicles. Obtain important insurance information from the other drivers and exchange contact details. If possible, get a copy of the police report and any medical records related to the incident.
• Report your suspicions: When contacting your insurance company, clearly communicate your suspicions and provide them with the evidence you have gathered. Explain the situation, including any interactions or behaviours that raised red flags. Be as detailed as possible, covering all relevant facts and circumstances.
• Provide specific details: Include specific details such as the names of individuals involved, insurance policy numbers, vehicle descriptions or license plate numbers, physical descriptions of the individuals involved, and any vocal characteristics for phone scams. These details will assist the insurance company in their investigation.
• Inquire about next steps: Ask your insurance company about the next steps in the process. Find out if they will be conducting an investigation and how they plan to proceed. Inquire about any additional information or documentation they may require from you.
• Follow up: Stay in regular contact with your insurance company to receive updates on the status of their investigation. If new information or evidence comes to light, be sure to provide it to them promptly. Following up demonstrates your commitment to resolving the issue and can help expedite the process.
• Seek support: Dealing with insurance fraud can be stressful and overwhelming. Remember that you are not alone. Reach out to your support network, such as family or friends, to share your concerns and seek guidance. They can provide emotional support and help you navigate any challenges that may arise.

Remember, insurance fraud is a serious matter that can have significant financial implications for both individuals and insurance companies. By reporting your suspicions to your insurance company, you are playing a vital role in combating fraud and protecting yourself and others from potential financial harm.

Report to local law enforcement

If you suspect auto insurance fraud, you should report it to your local or state police. Depending on how quickly you need assistance, you can also call the police. For example, if you suspect a staged accident, it's a good idea to call the police right away.

You can also report auto insurance fraud to the National Insurance Crime Bureau (NICB). The NICB is a non-profit organisation that works with insurance companies and law enforcement to identify, detect, and prosecute insurance criminals. You can report fraud to the NICB by calling 800.TEL.NICB (800.835.6422) Monday through Friday, 7 a.m. to 7 p.m. CST, or by reporting it online.

Additionally, you can report suspected fraud to your insurance company. They are the ones who will help cover your damages, so it's important to keep them informed. Ask the representative about your options for reimbursement and replacing expensive safety equipment.

If you are in New York, you can also report suspected insurance fraud to the Department of Financial Services (DFS) or call the Insurance Fraud Hotline at 888-FRAUDNY (888-372-8369). The matter will be kept confidential.

Remember, insurance fraud is a crime that affects everyone, not just the insurance companies. By reporting suspected fraud, you can help reduce the impact on consumers, who often bear the cost of fraud through increased premiums and higher prices for goods and services.

Contact the Coalition Against Insurance Fraud (CAIF)

The Coalition Against Insurance Fraud (CAIF) is America's only anti-fraud alliance, speaking for consumers, insurance companies, government agencies, legislators, and regulators. It was founded in 1993 by 17 organizations that contributed $500,000 to finance anti-fraud efforts. Since then, the coalition has grown to include over 90 members, including GEICO, National Consumers League, First Acceptance Corp., Healthcare Insight, Property Casualty Insurers Assoc. of America, SAS Institute, Thomson Reuters, Nationwide, and the Virginia State Police.

The CAIF is dedicated to combating all forms of insurance fraud through advocacy, public education, and research. It empowers consumers to fight back, helps fraud fighters to better detect this crime, and deters more people from committing fraud. The coalition supports this mission with a large and continually expanding armory of practical tools, information, research and data, services, and insight as a leading voice of the anti-fraud community.

The CAIF's website has a range of resources to help consumers identify and protect themselves from insurance fraud. These include:

• Scam alerts for common schemes, with information on variations and the best measures for prevention and defense.
• Consumer fraud videos that tell the anti-fraud story and explain why insurance fraud is a dead end.
• Stats and facts about fraud, including how big it is, the damage it causes, and the scams that are happening and why.
• FraudPod, a rundown of the latest news and trends in the world of insurance fraud.
• FraudWire, two quarterly digital publications reporting on important developments involving legislative activity and public awareness.
• Fraud News Weekly, a paid digital publication summarizing weekly trends on legislative and regulatory developments, state and federal court decisions, public outreach and media coverage, fraud arrests, convictions, civil cases, and administrative actions.
• Get a Grip on Fraud: Fraud Awareness Manual, an action guide for creating memorable fraud-awareness events.

The CAIF also works to:

• Enact stronger anti-fraud laws through local and grassroots campaigns.
• Create model bills, for example, establishing insurance fraud as a specific crime.
• Strengthen anti-fraud bills and support prosecutions.
• Raise public awareness of insurance fraud and how the public can fight back.
• Unite outreach efforts.
• Sponsor major research and surveys.

If you suspect insurance fraud, you can report it to the CAIF. You can also report it to the fraud department of the car insurance company in question, the National Insurance Crime Bureau (NICB), your local FBI office, or the National Association of Insurance Commissioners (NAIC).

Report to your state's fraud hotline

If you suspect insurance fraud, you can report it to your state's fraud hotline. In the U.S., insurance fraud costs the average family between $400 and $700 per year in the form of increased premiums. It is important to be vigilant and report any suspected fraud to help protect yourself and others from these scams.

Each state in the U.S. has its own fraud hotline that you can call to report insurance fraud. These hotlines are typically operated by the state's insurance department or a similar agency. You can find the phone number for your state's fraud hotline by searching online for " [your state] insurance fraud hotline". When you call the hotline, you will be able to speak to a representative who will take down the details of the suspected fraud and initiate an investigation if necessary.

In addition to reporting to your state's fraud hotline, you can also report insurance fraud to the National Insurance Crime Bureau (NICB) by calling 800-TEL-NICB (800-835-6422) or submitting a report online. The NICB is a non-profit organization that partners with insurance companies and law enforcement to help identify, detect, and prosecute insurance criminals.

You can also report insurance fraud directly to the insurance company that you believe is being defrauded. Many companies have systems in place for reporting fraud, and you can call or write to their headquarters for more information. Additionally, you can report insurance fraud to local law enforcement or your local FBI office.

When reporting insurance fraud, it is important to provide as much detail as possible, including any identifying information such as names, insurance policy numbers, vehicle descriptions, and physical descriptions of those involved. It is also helpful to provide specific reasons why you suspect fraud.

By reporting suspected insurance fraud to the appropriate authorities, you can help protect yourself and others from financial harm and ensure that those engaging in fraudulent activities are held accountable.

Frequently asked questions