Insurance fraud happens when anyone deliberately provides false or misleading information to an insurance company. This can be before or after an incident or a claim is filed. Lying to an insurance company is against the law and can carry significant fines and even jail time.
How does insurance fraud work?
There are plenty of scenarios where insurance fraud can take place, but one common example is with a car wreck. Let’s say you’re involved in an accident, but the vehicle you were driving was uninsured or underinsured. Instead of filing a claim immediately, you wait until you boost your collision coverage and file a claim a few days later so you can get more money to pay for the damage.
Is insurance fraud a victimless crime?
No. Insurance fraud contributes to higher insurance premiums, increased medical bills, and other costs, which we all pay.
A 2022 report estimated that insurance fraud costs the U.S. more than $300 billion a year.
Does anyone actually prosecute insurance fraud?
Yes. The Insurance Fraud Unit at the Colorado Attorney General’s Office specializes in insurance fraud investigations, and works closely with other agencies like the National Insurance Crime Bureau, Colorado Division of Insurance, FBI, and local police departments to go after those who commit fraud.
Report insurance fraud to the Colorado Attorney General’s Office.
