Insurance Fraud Costs You $200-$300 A Year

By KOMO Staff & News Services

Summary

Study finds property/casualty fraud costs Americans nearly $30 billion each year.

Story Published: Feb 20, 2006 at 5:33 AM PST

Story Updated: Aug 31, 2006 at 1:13 AM PST

Insurance Fraud Costs You $200-$300 A Year
SEATTLE - You’re being robbed and you may not even know it. The crime is insurance fraud, and it costs every Northwest household between $200 and $300 each year in higher insurance premiums.

A recent study conducted by the National Insurance Crime Bureau shows property/casualty fraud costs Americans nearly $30 billion each year. The Insurance Research Council says that fraud and inflating the value of claims added between $4.3 and $5.8 billion in auto injury settlements in 2002.

The IRC also reports that nearly one-third of all bodily injury claims for auto accidents contained some kind of fraud.

You can help fight insurance fraud in the Northwest by reporting it. Each year, the NW Insurance Council offers citizens cash rewards of up to $5,000 for information that leads to the arrest and conviction of people who commit insurance fraud.

And if you know someone who has committed insurance fraud, simply call the National Insurance Crime Bureau (NICB) Hotline at (800) 835-6422. You may choose to remain anonymous and still be eligible for a reward.