Every year, about 5-10% of insurance claims in the U.S. are found to be fraudulent, stealing over $80 billion. It's important to be aware of the different types of insurance frauds that could potentially befall you, and today, on National Insurance Day, we have a few tips to help keep yourself safe from scams.
Carefully check insurance claim forms. Things such as car accidents, theft, slip and falls, or various other accidents could potentially be staged attempts to make a fraudulent claim. Be sure never to sign a blank insurance claim form and carefully read what the form details. Be sure to understand what you are signing.
Keep copies of all documents. Having copies of important documents like agreements, policies, or claims can protect you from fraud. These copies can be proof against fake insurance agents who might try to keep your down payments and leave you without coverage.
Keep your information private. If some of your insurance information leaks, then it might lead to identity theft. For example, Medicare scammers will call and try to get your Medicare number, which is the same as your Social Security Number. New Medicare cards are in the mail, but until you receive yours, remember that Medicare will never call, email, or visit you and ask for your personal information.
These tips are good to remember regardless of whether you're applying for new insurance or just using your medical insurance to see your doctor. Be vigilant when signing up for new policies or when giving out your insurance information and don't be scared to ask questions when it comes to your insurance provider. Stay knowledgeable and stay safe!