Most Common Types of Illinois Insurance Fraud

If you have recently been charged with insurance fraud in Illinois, it helps to know the most common types of fraud the Illinois court system handles. In this post, we will detail fraud charges for you and let you know how to get help.

Kinds of Insurance Fraud You Can Be Charged with in Illinois

Insurance companies lose $80 billion every year due to fraudulent insurance claims. That’s why law enforcement officials are looking for those who commit the most common types of insurance fraud. Here’s a list for you.

Vehicle Insurance Fraud

This type of fraud often occurs with vehicle accidents. The owner’s car may have gotten scratched or damaged in an accident. He or she reports the damage to his insurance company and collects the payment but never fixes the vehicle. Another type of fraud is hiding the vehicle and collecting money as if the vehicle was stolen.

Sometimes people will even stage a car accident to commit fraud. Several people may be involved in the fraud, or simply the driver. At other times, insurance adjusters are in on the fraud.

Bottom line? Anyone who reports damage that wasn’t truly an accident or inflates vehicle value could be charged with insurance fraud.

Health Insurance Fraud

Health care providers are sometimes involved in health insurance fraud. They may overbill for a provided service or bill for a service that was never performed. Patients are not necessarily aware of the fraud because it is not reflected in their billing.

Another way health care providers commit fraud is by ordering tests that are not medically necessary. Additional testing is how some health care providers get more money from insurance companies.

Home Insurance Fraud

Staged acts in residences are a typical form of home insurance fraud. An owner may stage an act of vandalism, a water leak, a fire, or other damage to collect insurance payments. Some homeowners list valuable items on their policy, then destroy the items to collect money.

If the owner possesses an abandoned home, arson is a common way to collect insurance payouts. When an owner cannot make payments on a home or cannot find renters, fire is sometimes used as a solution.

Renter’s Insurance Fraud

When people rent, they can purchase renter’s insurance to protect their belongings. Then, when they decide to move, they may sell or destroy their belongings to collect insurance payments.

Natural Disaster Fraud

Natural disasters like major storms create the opportunity for some people to commit insurance fraud. Perhaps the homeowner experienced damage to his or her home, yet inflates the numbers on the claim. He or she may make a false report and take advantage of an insurance company at a time of crisis. Any way this occurs, it may be considered a crime in the state of Illinois.

Identity Fraud

In rare cases, a person will fake death to allow a beneficiary to collect life insurance benefits. When the beneficiary flees, the insurance company knows they have been defrauded.

Legal Assistance for Illinois Insurance Fraud Charges

A conviction for insurance fraud will result in stiff penalties. That’s why you need an experienced Illinois criminal defense attorney to fight your charges. We will advise you on the best defense to use. With our help, you may be able to get your charges reduced or dropped. Call us today for a free case review.

About the Author

Sami Azhari has been working as a lawyer since 2007, after receiving his Juris Doctor from the Michigan State University College of Law. He has handled numerous state and federal cases, and is known throughout the Chicago and Rolling Meadows area for providing his clients with high-quality, skilled representation. He has been recognized by SuperLawyers, the National Trial Lawyers Association, and other notable organizations, and has spoken at a number of legal conferences.