Insurance Fraud

What is insurance fraud?

Insurance fraud occurs when someone knowingly files an application or claim containing false, incomplete or misleading information. Typical types of fraud include:

  • Submitting claims for items that were not damaged in a loss
  • Inflating the value of items that were lost
  • Staging accidents
  • Committing arson
  • Withholding material information when applying for insurance
  • A vehicle is reported as stolen
  • Faking or embellishing an injury

What are the penalties for committing fraud?

The penalties vary by state but a conviction of insurance fraud can lead to imprisonment for up to seven years and fines up to $15,000.

How does insurance fraud affect me?

Fraud is a very costly problem and affects all of us by increasing the rates we pay for insurance. It's estimated that the cost of fraud in the property and casualty industry is approximately $20 billion each year which costs each of us approximately $300 every year in increased premiums.

How can I help?

If you suspect that someone is committing fraud, please call our office at (717) 354-4921 or (800) 448-4622.