Insurance Fraud Prevention Tips

Insurance fraud costs billions annually and affects everyone through higher premiums. Understanding how to recognize and prevent fraud protects you and helps keep insurance costs down.

Types of Insurance Fraud

Application Fraud

• Providing false information on applications
• Omitting important details
• Misrepresenting risk factors

Claims Fraud

• Exaggerating damage or injuries
• Staging accidents
• Filing false claims
• Inflating repair costs

Premium Fraud

• Misclassifying employees
• Underreporting payroll
• Providing false business information

How to Protect Yourself

When Applying for Insurance

1. Be Honest: Provide accurate information

2. Read Carefully: Understand what you're signing

3. Ask Questions: Clarify anything unclear

4. Verify Agents: Ensure you're working with licensed agents

5. Review Documents: Check all information before signing

When Filing Claims

1. Document Everything: Photos, receipts, estimates

2. Get Multiple Estimates: Compare repair costs

3. Work with Reputable Contractors: Check licenses and references

4. Review Settlement Offers: Ensure they're fair

5. Report Suspicious Activity: If something seems wrong

Red Flags to Watch For

From Agents or Brokers

• Pressure to buy immediately
• Unusually low premiums
• Requests for cash payments
• Unlicensed agents
• Vague or confusing explanations

From Contractors

• Unsolicited offers after storms
• Requests to sign over insurance benefits
• Pressure to use specific contractors
• Offers to waive deductibles
• Demands for upfront payment

From Claims Adjusters

• Requests for personal information via email
• Suspicious phone numbers or emails
• Pressure to accept quick settlements
• Unusual payment methods

Common Scams

Storm Chasers

Contractors who appear after storms offering:

• Quick repairs
• "Insurance deals"
• Upfront payments
• Pressure tactics

Fake Insurance Companies

• Unlicensed insurers
• Suspiciously low rates
• No physical address
• Poor online presence

Staged Accidents

• Intentional collisions
• Exaggerated injuries
• False witnesses
• Inflated damage claims

What to Do If You Suspect Fraud

Report to Your Insurance Company

• Contact your agent or company directly
• Provide detailed information
• Keep records of communications

Report to Authorities

• Texas Department of Insurance
• National Insurance Crime Bureau
• Local law enforcement
• FBI (for major fraud)

Protecting Your Information

Identity Theft Prevention

• Don't share policy numbers unnecessarily
• Shred insurance documents
• Monitor credit reports
• Use secure websites
• Be cautious with phone calls

Online Safety

• Use secure websites (https://)
• Verify website authenticity
• Don't click suspicious links
• Use strong passwords
• Monitor accounts regularly

Working with TGI Agency

We're committed to preventing fraud and protecting our clients by:

• Verifying all information
• Working only with licensed carriers
• Educating clients about fraud
• Reporting suspicious activity
• Maintaining ethical standards

If you have concerns about insurance fraud, contact us immediately.

Resources

• Texas Department of Insurance: www.tdi.texas.gov
• National Insurance Crime Bureau: www.nicb.org
• Insurance Information Institute: www.iii.org

Stay informed and help fight insurance fraud.