Myth – Insurance Fraudsters aren’t real criminals
If insurance fraudsters are caught, they could face severe difficulties later in life trying to find a job, may get imprisoned and ironically find it hard to obtain insurance. Most of the time insurance criminals are actually funding other illicit activities such as drug trafficking and terrorism
Myth – I can save money on my car insurance by putting it in someone else’s name
While it may seem that putting another person’s name as the main driver might save you in the short-term, in the long-term it is dangerous as you are actually committing a type of fraud known as “fronting”.
Myth – The police won’t act on insurance fraud.
The UK has a specialised unit designed to tackle insurance fraud. Known as the Insurance Fraud Enforcement Department (IFED) it regularly keeps an eye on all insurance crimes and has prosecuted many in the past and will most likely punish those that are caught.
Myth – Nobody will find out if I lie on my application form.
Even if you make a few adjustments on your form, such as saying your car is parked on a driveway when it is actually parked on a roadside could be considered as insurance fraud. If you are found guilty of this your insurance plan could be voided or your payout could be restricted.
Myth – Nobody will find out if I make a fraudulent claim.
Insurance companies have very in-depth systems designed to track and single out fraudulent claims. Most companies will eventually terminate your policy and then inform the rest of the industry for any fraudulent networks. This may result in your not being able to find insurance for anything.
This is your guide to bust all of those insurance myths that are commonly spreading around. Remember to check out our other blogs for more insurance information!
Thanks for reading.