Setting Yourself on Fire is not a Good Idea

People may think they’re being clever when they try to cheat insurance companies, but often they end up making mistakes that get them caught, injured and sometimes even killed.

The Progressive group of insurance companies noted in a recent announcement that while the escapades of people who commit fraud can be amusing, insurance fraud is a serious crime that costs consumers a lot of money. The National Insurance Crime Bureau estimates that property and casualty insurers pay more than $30 billion a year in bogus claims–costs generally passed on to consumers in the form of higher premiums.

“People think of insurance fraud as a victimless crime when, in fact, honest policyholders end up being victimized,” said Ray Albertini, Progressive’s national director of special investigations. “Most insu-rance companies base their rates on the cost of doing business. When costs go up because of fraudulent claims, other customers end up paying the price. People need to be aware of fraud and be willing to report it when they suspect it.”

Albertini said it can be tough to catch the offenders, but sometimes they make it very easy, as in these cases:

“People may laugh at some of these incidents, but what they need to realize is that people who commit fraud are taking money out of everyone else’s pockets,” Albertini said.