Insurance Fraud Hurts Us All

Insurance fraud doesn't just hurt insurance companies -- it hurts everyone buying insurance through the increased costs of premiums.
"Claim abuse continues to be a significant problem," said Elizabeth Sprinkel, Senior Vice President of The Insurance Research Council (IRC). The IRC estimates that claim fraud added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims in 2007. "The excess payments attributable to fraud and buildup help drive up the costs of insurance for everyone," added Sprinkel.
The Coalition Against Insurance Fraud estimates that insurance fraud costs at least $80 billion each year, or almost $950 per family. The Hawaii State Department of Commerce and Consumer Affairs, which prosecutes and investigates car insurance fraud, estimates that car insurance fraud costs each Hawaiian household $200 to $300 more in premiums every year.
During these trying economic times, have Americans reached a point of desperation? Does the line between right and wrong blur when the stock market plunges? One thing is clear: As the country struggles economically, less people have a problem with crimes where the 'victim' is a faceless corporation.  Even though consumers in general end up paying the price for their crimes, fraudsters don't seem to be bothered.

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