How to Avoid Becoming a Victim of Insurance Fraud
Insurance fraud is not typically a violent crime, just a lucrative one. As consumers, there are several common-sense steps you can take to help reduce fraud and minimize its impact.
Be an Informed Consumer. Insurance premiums are a significant expense for most of us. The premiums you pay are based on your individual claims history and the degree of risk involved. Generally speaking, the greater the risk, the higher the premium. For example, the theft premium for a Honda Accord will be far higher than that of a Yugo quite simply because more Honda Accords are stolen. Similarly, a tightrope walker will pay more for life insurance than a librarian, all else being equal.
Comparison Shop. Premiums can vary significantly from insurer to insurer so it pays to shop around. To make comparison shopping a little easier, the Insurance Department publishes consumer guides for auto, homeowners, long-term care and HMO/health insurance that provide sample premiums for insurers that offer these coverages in New York State. In addition, the Insurance Department’s Web site is also the home of an Interactive Guide to HMOs, which allows consumers to find information about HMOs operating within their home county.
Know Your Agent or Broker. Consumers can often be victimized by unscrupulous agents or brokers and discover only after they file a claim that they are without coverage for their home or their car. If an uninsured home is damaged by fire, the owner is solely responsible for restoring it and paying back any mortgage holders. If a driver is involved in an accident while driving an uninsured vehicle, any personal assets are subject to forfeiture if that driver is sued for damages. Deal only with licensed agents and brokers. Agents and brokers must carry proof of licensure. Ask to see it. Or call the Insurance Department’s Licensing Bureau at 1-800-342-3736 for licensing information.
Where’s the Policy? You should receive a copy of any type of insurance policy complete with endorsements and declarations specifically outlining your coverage and its limitations within a reasonable period after your purchase. If you do not receive it, question your agent or broker. If there is no satisfactory explanation for the delay, contact the New York Insurance Department immediately. You may not have the insurance coverage you paid for.
Are You Being Billed for Services You Have Not Received? If you have received medical or dental treatment that is covered by an HMO or an insurance company, you will receive an “Explanation of Benefits” statement listing the services for which benefits have been paid. Review it carefully to ensure that your health care provider has not “bumped up” your claim (i.e., overstated services provided in order to receive a higher payment), or charged for services you did not receive. Contact your insurer immediately if you feel there are discrepancies. Fraudulent claims payments translate into higher insurance premiums for all of us.
What If You’re Involved in an Automobile Accident? Call the police to the scene and make sure that the details of the accident are documented and the identities of the occupants of the other vehicle are verified. Be suspicious if the driver of the other vehicle insists there is no need to call the police. That driver’s insurance card may be fraudulent and his car uninsured.
Auto Insurance Fraud is a multi-billion-dollar problem nationwide. Watch out for these common scams:
The staged accident – A vehicle filled with people will stop suddenly in front of you, setting you up as the cause of a rear-end collision. The “victims” will then file costly multiple medical and damage claims using doctors and lawyers who are part of the scam.
Steerers – These individuals will solicit the injured or allegedly injured parties and direct them, for a “referral fee,” to lawyers, doctors and/or medical facilities that are part of the scheme. Be on the lookout for steerers at accident scenes and don’t become their victim.
Inflated claims – If you are in an automobile accident, be sure you know the extent of the damages to your own car and the other vehicle and carefully review claims. Vehicle owners and body shops frequently inflate estimates for damages and then either perform other repairs not related to the accident or simply keep the extra money.
BE ALERT! IT’S YOUR MONEY.
Think twice before replacing an existing life insurance policy with a new one. The new policy may have exclusions or waiting periods for pre-existing conditions that are covered by your current policy. And premiums are likely to be higher because you are older. The Insurance Department protects consumers by requiring agents to provide prospective purchasers with pertinent facts when that purchase will cause the buyer to surrender, lapse, or in any way change the status of an existing life insurance policy. Department Regulation 60 requires this full disclosure so that prospective life insurance purchasers can make decisions in their own best interest.
Don’t allow high-pressure salesmanship to persuade you to sign up for a type of policy or certain coverages that you are not sure you need. Take time to decide what’s right for you.
Read your policy carefully before you sign. If you have questions, ask your agent or broker, or your insurer. An additional source of information and help is the Insurance Department’s Consumer Services Bureau.
Visit Hudson Valley Agents web site for additional tips, knowledge base, and an on-line safety store. Or call us at 845-778-2141 with questions you may have pertaining to this article.
Five home security tips to keep you safe from theft
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Establish a security routine: Make sure that doors and windows are locked and alarm systems are turned on. Keep your car alarm key fob by your bed side at night. You can activate your car alarm in an emergency to draw additional to your home and ward off potential burglars. |
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Avoid giving information to unidentified telephone callers or announcing personal information in want ads or public notices, such as giving your address when advertising items for sale. |
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Notify police if you see suspicious strangers in your area. |
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Handle your keys carefully. Don’t carry house keys on a key ring bearing your home address or leave house keys with your car in a commercial parking lot. |
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Don’t hide your keys in a secret place outside your home. Burglars always know where to look.In addition, you can download free home inventory software from Hudson Valley Agents to help you keep track of your belongings. You can also browse through their online safety 1st store to see what kind of products can improve your home safety. These products may also reduce your insurance premiums so don’t forget to let your agent know if you have purchased any. |
Winterize Your Vehicle
With an “Insurance Tune Up.” By Tim Dodge
With winter nearly upon us, now is the time to prepare for its harsh and unpredictable weather. A visit to the “car doctor” is essential, as well as updating insurance coverage–both home and auto. Recommendations from AAA Western and Central New York include the following winter driving preparations:
- A thorough inspection of your vehicle may be necessary to determine its winter worthiness. This mechanical check-up should include tires, windshield wiper blades, radiator, belts, and the battery, to name a few.
- Carry a “survival kit” in your car at all times, including a small bag of abrasive material (sand, salt, non-clumping cat litter); flashlight and extra batteries; small snow shovel, snow brush and ice scraper; windshield washer fluid; cloth or roll of paper towels; booster cables; blanket; protective clothing such as heavy gloves, scarf, warm boots; warning devices (triangles); first aid kit; drinking water and a granola or candy bar.
- Plan long trips carefully, and begin your journey by following weather forecasts. Also, conduct as much of your trip as possible in daylight, and reduce the risk of fatigue and unseen road hazards.
- Observe roadway conditions and laws, such as speed limits and icy pavement zones. New York state requires the use of seatbelts and prohibits hand held operation of cell phones while driving.
- Consider buying comprehensive physical damage coverage for your cars. This will cover damage caused by falling objects such as heavy icicles.
In addition to the many hazards that drivers must endure across New York state, winter can be brutal to homes and other properties. Make sure to update your homeowner’s or renters insurance coverage using these recommendations:
- Having enough insurance to cover the cost of replacing the home is essential. If you built a home for $200,000 three years ago and have since added on without changing your insurance, a loss will catch you short. In addition, by combining auto and homeowners policies, a Trusted Choice® independent insurance agent may offer a discount on the price you pay.
- To cover flood losses, talk to your agent about buying flood insurance through the National Flood Insurance Program. Be aware that there is a 30-day waiting period from purchase to the start of coverage.
- To assist in proving a claim against the insurance company, it is important to keep an inventory of household possessions, receipts for the purchase of items, and/or a videotape or photographs of your belongings.
You can also visit the safety1st link at Hudson Valley Agents web site www.hvagents.com where you will find several safety products that may reduce the risk of damage to your car or home.
Candle usage, fires on the rise
The past decade has seen an increase in candle usage, with candles now flickering in seven out of ten households in America. It’s easy to see why: in addition to being relatively inexpensive, candles have a way of adding atmosphere and romance. However, experts report that home candle-related fires also have increased substantially during the past decade, and warn that magic moments can turn into tragic moments unless proper precautions and common sense are used from the start.
According to the National Fire Protection Association (NFPA) almost 19,000 home candles fires were reported in 2001, resulting in an estimated 190 civilian fire deaths, 1450 civilian fire injuries, and more than $265 million in direct property damage. The trend has steadily decreased since then, down to 15,500 homes, 150 civilian deaths, and 1270 civilian injuries; but the direct property damage loss has climbed to over $539 million. Experts feel the trend will start to climb again as people start spending more time at home due to the much higher costs of fuel we are now seeing.
“People should always keep in mind that a lit candle is an open flame,” says Marty Ahrens of the NFPA. “That means that if left unattended, or used carelessly, candles have the potential for disaster. These days, many people are using candles as part of their décor, but from a practical standpoint, some home interior decorating ideas are completely unsafe.”
“Most candles fires are from simple carelessness,” said David J. Bonné, Vice President of Hudson Valley Agents in Walden NY. “A candle can be like a wolf, turn your back on it for one minute and it can really hurt you. However, a little common sense can prevent fires from occurring and save lives.”
According to the NFPA, the following tips can help consumers stay safe:
- Consider your children and pets! An adventurous toddler, a puppy’s wagging tail, or a cat jumping on the mantle can cause a lot of trouble. Never use candles where they can be knocked over by children or pets. Keep candles, matches, and lighters stored high and out of the reach of children, and never allow teens or children to have candles in their bedroom.
- Keep things on a level playing field. Make certain candles are placed on a stable piece of furniture, in sturdy holders that won’t tip over. Candles should fit into their holders securely and the holders should be made from materials that will not burn.
- Keep candles away from other combustibles. Candles can easily cause many objects to ignite. Wood paneling and paperwork are obvious targets, but even a curtain in front of an open window or drafty area can pose a hazard, given the right breeze.
- Avoid greenery. Greenery can catch fire and spread very quickly. Avoid using candles in floral arrangements.
- Quality counts! Fire is not the only candles related concern. Candles can damage a house when they “burn dirty,” which means that they put out smoke into the air, which will be drawn to-and stain-walls and ceilings. “It can make the room look as though it had been damaged by a fire in another room,” explains Mr. Bonné. “But unlike a fire, which is sudden and unexpected, this type of damage takes place over a period of time, and may not be covered under your homeowners insurance policy.” Always be sure to use name brand, quality candles.
Holiday candles usage is a special concern, because December is the peak month for candle fires in homes, with almost twice the average numbers of incidents reported. Of these fires, the leading type involves holiday decorations. “Many fires occur when items, such as greenery or other decorations, come into contact with a lit candle,” said Ahrens. Always consider fire safety when using candles as part of your holiday decorating.”
To help consumers avoid getting burned, Hudson Valley Agents has designed the 1st of it’s kind web portal designed to offer products that will help consumers avoid potential safety hazards and possibly reduce their insurance costs by giving additional discounts on their policies for having such products. “The uniqueness of this portal is that all your insurance safety related items are there under one roof so to speak,” says Mr. Bonné. “No more hunting and pecking around the web or in stores for these items, and they’re not cluttered in with other non-safety related items.” To find out more about these products go to www.hvagents.com . From there you can click on any of the safety links or learn more about insurance safety and hazard prevention by visiting the “insurance encyclopedia” in our resource center. You can also call our agency and speak to a professional anytime with any questions you may have.
