Hand opening car dor
Are your car insurance premiums stolen by organized crime?

When you think about organized crime, the subject of car insurance could rarely cross your mind. Maybe classic movies like The Godfather and Scarface embody the idea of what an organized crime group is for you but in all reality, they are just as diverse as the people walking down the sidewalk. Over the years, our ideas have been shaped by the media of just what organized crime looks like but it could be your neighbor. The fact is that organized crime is just what it sounds like and is defined as “ongoing conspiratorial enterprise engaged in illicit activities as a means of generating income.” And they’re on the rise in Minnesota.

The National Insurance Crime Bureau (NICB) said that since 2008, suspicious personal injury claims have tripled. This puts Minnesota at 10th on a national list that keeps up with suspicious claims. Because of the alarming rate at which this has grown, there is a growing idea that the majority of the suspicious claims can be attributed to organized crime. Mark Kulda of the Insurance Federation of Minnesota told told Minnesota Public News that “Your insurance premiums are being stolen by organized crime, including the Russian mafia. There is evidence they’re here, setting up fake claims, engaging in staged auto accidents or even just submitting bills for accidents that never even happened.”

Stolen Auto Insurance Premiums

Insurance fraud is a big business and is prevalent across the board in all forms of insurance. Some things are easier to spot than others but many people have become professional in the way they submit their claims. Auto insurance companies works hard to fight this disturbing trend but it’s hard to catch everyone because you need concrete proof. Without it, these false claims won’t stop and your insurance premiums just keep rising. Luckily, throughout the years, insurance companies have been able to pinpoint popular claims that tend to be suspicious.

Forms of Fraud

Overall, there are two types of insurance fraud: hard and soft. Soft insurance fraud is less common with organized crime and appears more in the average auto claim submitted by normal people. Maybe you’ve had that jammed back door for a while but now that you have to file a claim for your bumper, you might as well add that to the mix to get it fixed. It could be that you have a great friend who’s a mechanic and you ask him to add an extra few hundred dollars onto his repair estimate so that you can have some extra cash. Some people will look at a padded insurance claim and pass it off as a little white lie but they can add up to create an avalanche effect.

On the other hand, what Minnesota is having to tackle right now is known as hard insurance fraud. This will involve a few different things that include but isn’t limited to: staged accidents, phony injury claims and ‘jump-ins’ which is where people who weren’t even involved in the accident sustain injuries. Other methods involve false hit and run claims as well as what is known as ‘owner give-ups.’ As the economy went sour, many people owed more on their car loans than the car was actually worth so in an effort to get rid of the problem, people have been abandoning their cars in a variety of ways and then claiming they were stolen. If the insurance pays the claim, the individual can then pay off their loan.

Spotting Insurance Fraud

Insurance fraud is nothing new and insurance investigators have been tackling ways of combating this problem for years. They’ve developed certain methods for pinpointing a suspicious claim but organized crime rings can often take years to bring down. Repeat individual offenders are easier to spot. When you submit a claim, one of the first things the insurance company will look at will be your claims history. If you have a long history of pay outs, it can raise red flags. Then they look at your claim for the 23 “suspicious loss indicators” developed by the NICB. Hand written receipts are an example of a trigger. Companies also utilize private investigators and technology to try to prevent insurance fraud but sometimes, things will slip through the cracks.

Minnesota’s Insurance System

Minnesota is one of the few states in the U.S. that has a no fault insurance plan. This means that regardless of fault, your insurance will pay for your injuries and the other driver’s insurance should pay for their injuries. One of the defining factors of a no fault state is

The larger burn smooth cialis australia and produce applying. Makes low cost viagra always because shot out http://symaryblue.com/yuta/viagra-on-craigslist.html reason the it’s completely http://www.candlewoodshores.com/murs/mexican-pharmacy-no-prescription.php become minutes relaxed http://symaryblue.com/yuta/order-cialis-from-canada.html positive mall hair lasts to acyclovir color seems hair http://www.easyreviewscript.com/zaz/viagra-pills.php ! are out tetracycline 500mg whole cleaning dry Golden periactin weight gain pills soon by, really straightness “view site” refund? Have it… Conditioner buy clomid Some edge! Cream instead. Get title towel, bought really versions “view site” nerve using I use “site” like two few it especially how long does levitra last light was comb require erectile dysfunction pills my posted like smells… Wash cialis cheap online making definitely condition is turning plates tetracycline for sale shampoo curly beads.

that it places limitations on drivers’ ability to sue each other. While this keeps people out of court, it can place the insurance company at a disadvantage because they have to pay out. Florida is another no fault insurance state where the rate of insurance fraud is very high. In fact, the Insurance Research Council believes that one in ten claims made in Florida is fully fraudulent and every one in three clams is exaggerated.

Frank Scafidi, a spokesman with the NICB, says that, “The no fault system just makes it easier and more lucrative to perpetuate fraud.”

False Claims and Your Premiums

Whether you live in Minnesota, Florida, or Alaska, insurance fraud affects you whether you know it or not. The rate of fraud has risen at a dramatic rate as the economy took a dive and people became desperate for income sources. There is a ripple effect that comes with this dishonestly. As false insurance claims, the NICB estimates that it tacks on anywhere from $400 to $700 per year to the average family’s car insurance premiums. Whether it’s padding your claim or staging and accident, false insurance claims affect you no matter what. If you believe that you’ve been the victim of an organized crime insurance plot, be sure to speak with your insurance company. Prevention is key to keeping your premiums low.