Auto insurance fraud poses a serious risk not just to insurance companies but to all drivers in the state of Maryland Insurance Administration (MIA)’s jurisdiction. Fraud drives premiums higher for everyone and opens the door to identity theft, staged accidents, and false claims. In Maryland, the laws are clear: making false statements on a claim, participating in a fake accident, or submitting misleading documentation can lead to fines, civil restitution, and even prison time.
Understanding What Insurance Fraud Looks Like
Insurance fraud comes in many forms. One common example involves someone intentionally causing or staging an accident so that a claim can be made. Another involves misrepresentation on an application or claim. For instance, lying about who was driving, the nature of damage, or the cost of repairs. Identity theft also plays a part. Fraudsters may use someone else’s personal information to obtain coverage, file claims, or otherwise wreak havoc. Recognizing these risks is the first step toward protecting yourself.
Keep Your Personal Information Secure
One of the best protections against insurance fraud is guarding your identity. In Maryland, the Office of the Attorney General outlines steps to prevent identity theft, which overlaps closely with insurance‑fraud protection. Avoid carrying your Social Security number or other sensitive details whenever possible. Shred documents that contain personal information before discarding them. When dealing with insurance paperwork or claims, ensure you’re providing details only to authorized persons and that you understand how the information will be used. If someone asks you sudden, unnecessary information or creates pressure, that could be a warning sign of fraud.
Be Vigilant at the Scene of an Accident
If you’re involved in a collision, taking a calm and organized approach helps guard against fraud. When a driver and their “witness” appear too eager or the scenario seems scripted, be alert. Document the scene. Take photos from multiple angles, write down what you observe, and collect contact information for any bystanders.
Notify law enforcement before letting things devolve into ambiguous claims. Immediately notify your insurer, give only factual information, and cooperate with any investigation. Staged accidents often rely on the absence of police reports or the presence of pre‐arranged witnesses, so your cooperation can make a difference.
Review Your Insurance Policy and Claims Carefully
Read and understand your auto policy. Know who is listed as the insured driver, what vehicles are covered, and the specifics of your coverage. If your insurer sends correspondence about a claim you never made or a policy you didn’t purchase, investigate immediately.
If you ever suspect a claim might be fraudulent, or you discover you’ve been unknowingly involved in one, reach out to your carrier and let them know. The Maryland Insurance Administration emphasizes that suspected fraud can and should be reported. You do not have to provide your name and your report can help protect others.
Report It When You Suspect Fraud
Knowing how to report suspected insurance fraud is essential. In Maryland you can contact the MIA’s Insurance Fraud Division at 1‑800‑846‑4069. Provide as much information as you can, including names, policy numbers, descriptions of events, and documentation if available. Reporting suspected fraud not only helps protect you but also helps reduce the pool of fraud that drives up costs for all policyholders.
The Consequences Are Serious
Finally, it’s worth noting how seriously Maryland treats insurance fraud. Under Maryland law, intentionally participating in a staged car accident or submitting a false claim can result in felony charges, up to fifteen years in prison in certain cases, hefty fines, and restitution required of the perpetrator. Awareness of these consequences underscores the importance of acting responsibly and staying vigilant.
Auto Insurance in Maryland
At Roadway Auto Insurance, we are dedicated to ensuring all drivers in Maryland are safe and ensured. Keeping an eye out for auto insurance fraud could help prevent your premiums from increasing. Contact our office today to talk to an agent and learn more about how to protect yourself and others on the road.