Insurance stories: Incredible auto insurance fraudsters
Insurance fraud has existed for as long as commercial insurance companies have existed. It occurs when people commit acts with the intent of fraudulently receiving insurance benefits to which they are not entitled or knowingly denying benefits to policy holders to whom the benefits are entitled. Fraudulent insurance claims amounting to billions of pounds are made by auto insurance fraudsters every year.
Incredible auto insurance claims
As the number of fraudulent auto insurance claims increase around the world, so does stories of botched auto insurance claims increase. Here we highlight a few incredible auto insurance claims that stand out for their absurdity.
Bridegroom loses £73,000 for making false claims
A bridegroom from Manchester and his parents joined forces and made fraudulent insurance claims, insisting they were injured in two separate minor crashes involving a few of their wedding party. The insurance fraudsters sued the operator of the bus they charted for the party and even went ahead to submit a video tape to prove they were in the ill-fated bus.
The problem with their claim was that further into their video tape evidence they could be seen laughing, dancing and having a great time after the accident. They had sued the bus operator for £1,500 each, but ended up paying £73,000 in court cost fees!
Bitter soon-to-be ex-husband exposes fraudulent spouse
A couple from Chicago, Illinois hatched a really bad idea to crash their family car into a tree and claim a sizable sum in auto insurance benefits. The problem with their plan occurred sometime later when the couple were embroiled in a bitter divorce.
The soon-to-be ex-husband found a video tape the couple had made together, showing his wife ramming the car into a tree. Bitter and ready to punish his wife for divorcing him, the man turned the tape in to the authorities and landed his wife 60 days jail time!
Teacher colludes with students to defraud insurer
A high school teacher in Bristol had had enough of her monthly car insurance payments so she decided to do something about it. She gathered a couple of her failing students and gave them straight A’s to stage a sham car theft and arson incident. The aim was to get rid of the car and receive some insurance benefits in the process.
The problem with the plan was that the students she colluded with could not hold their tongues when questioned by authorities about the incident. As a result, the fraudulent teacher was exposed, fired from her job and sentenced to three months in jail!
Moral of the stories
No matter how badly you want to get rid of that old piece of car you have been driving for a decade now or how badly you want to avoid the recurring monthly auto insurance payments, don’t result to fraudulent means to achieve your goal. Insurers are more alert to insurance fraudsters now than at any other time in history. You are better off paying your insurance premium as agreed than hatching fraudulent insurance plans that are likely to fail.