Car Insurance Fraud Hurts Everyone’s Bottom Lines
By Russ Warner, VP Marketing –
Car insurance fraud hurts everyone, costing the public billions of dollars annually.
Car insurance fraud is becoming an increasingly popular and expensive crime. Expensive for whom? The answer is simple: you and I.
Very few people are satisfied with their car insurance premiums and costs continue to rise in great part due to fraudulent claims. In addition to paying higher premiums, policy holders must also spend tax dollars on fraud-related investigations and prosecutions.
Some Surprising Facts about Fraud
Frank Scafidi, director of public affairs at the National Insurance Crime Bureau, estimates there are roughly $30 billion lost annually to insurance fraud. That’s enough cash to end global hunger for an entire year!
Insurance fraud is not just committed by crime rings, but by surprisingly a large number of otherwise honest people who take advantage of seemingly inconsequential, yet nonetheless illegal loopholes in the system. Examples include registering and insuring vehicles in other states, failing to mention the commercial use of personal vehicles, and being downright dishonest regarding the cause of accidents.
Prevention Is the Answer
Many states recognize the cost of fraud, and they use public education and aggressive criminal prosecutions to deter and prevent potential offenders. I agree with state and local governments that an ounce of prevention is worth a pound of cure.
In the case of insurance fraud, an ounce of prevention could be a simple 30-40 minute EyeDetect™ lie detection test given to submitters of questionable claims. The pound of cure would be paid with tax dollars and increased rates for all policyholders. Implementing EyeDetect in car insurance claims cases could help us all to save 15 percent or more on car insurance, without having to switch to Geico.
EyeDetect is a painless, non-intrusive test that perceives and analyzes involuntary eye movements to detect deception. Its impressive 85 percent accuracy is derived from its state-of-the-art technology, which requires low training costs and simple administration. Its quick execution makes the test ideal for large scale or frequent usage. Results are immediately encrypted in the cloud, calculated, and then made available to test administrators for evaluation. All results are stored safely, making the results incorruptible and fair for insurance companies or law enforcement to either identify fraudulent behavior or confirm the legitimacy of a policyholder’s claims.
Policyholders would think twice before filing fraudulent claims if they knew they would be tested by a lie detector. The harsh penalties of the crime would simply not be worth the risk.
