Protecting Yourself from Massachusetts Car Insurance Fraud

Auto insurance fraud is a major problem that costs the insurance industry billions of dollars per year, according to the Insurance Research Council (IRC). This may mean motorists are forced to pay more for their Massachusetts car Insurance premiums.

A common type of insurance fraud is personal injury fraud. This type of fraud is where victims of a car accident exaggerate their injuries to get a higher pay-out from their insurer. This results in what’s called medical build-up, whereby claimants seek unnecessary treatment for injuries and claim they are necessary for their recovery. For example, someone requiring $1000 worth of treatment may go to a specialist and get additional and unnecessary treatment to make injuries appear more serious.

The good news is that there is evidence that authorities are successfully fighting Massachusetts car insurance fraud. The Insurance Fraud Bureau of Massachusetts is a highly effective anti-fraud organization, and was the first fraud bureau in the US to be privately funded. In a prime example of Massachusetts leading the way in tackling insurance fraud, the Lawrence police department was awarded a prestigious ‘Innovations in American Government’ award from Harvard university in 2009. The prize was granted for the department's program which saved city residents more than $15.5 million in annual insurance premiums by reducing car insurance fraud.

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