Insurance fraudsters are crafty. They will try to scam you when you least expect it and they can be very convincing. If you stay aware, you can spot their tricks and avoid them. Keep the following in mind if you’re contacted by an unsolicited insurance salesperson or have to file an insurance claim.
When buying insurance
- You’re offered coverage that seems “too good to be true”. Phony insurers lure victims with unrealistically low prices that no legitimate company could offer.
- You’re asked to pay cash or make payments directly to an individual instead of a company.
- The agent or broker won’t show credentials or avoids giving you policy documents.
- You’re rushed to make a decision without time to review the policy details.
- The policy terms are vague or inconsistent with what was verbally promised.
When filing a claim
- A contractor, repair shop, or medical provider suggests you “add a little extra” to your claim.
- You’re pressured to sign blank forms or paperwork you don’t fully understand.
- You’re told you don’t need receipts or proof of loss because they will “take care of it.”
- Someone offers you money or a kickback in exchange for including false information.
- The person helping you avoids putting agreements or instructions in writing.
After an accident
- Other drivers or passengers insist on using a specific repair shop, doctor, or lawyer.
- Someone encourages you to make false injury claims or exaggerate damages.
- You see injuries or damage being staged, such as people suddenly claiming they were in the vehicle.
- A witness, tow truck driver, or “helper” appears suspiciously quick and pushes you toward certain services.
- People involved give inconsistent or changing stories about what happened.
When dealing with medical & repair services
- Providers recommend tests, treatments, or repairs that don’t seem necessary.
- You notice duplicate charges or billing for services you didn’t receive.
- A repair shop inflates the estimate far beyond the damage you can see.
- You’re asked to sign forms that don’t clearly explain the services or charges.
- The provider refuses to provide an itemized bill or avoids answering billing questions.
What to do if you suspect insurance fraud
- Report it to your insurance company.
- Report it to the Utah Insurance Department.
- Share details honestly. Even if you’re not 100% sure, your report can help stop insurance fraud.
- Keep copies of documents, receipts, or communications related to the suspicious activity.
- Trust your instincts. If something feels off, it’s worth reporting.