Insurance Scammers

[TwistedFate]

How many of you know someone who has filed an insurance claim fraudulently or kept the insurance money for themselves?

[CycleCat]

A friend parked his R1 behind another friend's truck. The truck friend backed over the R1 friend's bike. Apparently the truck friend didn't have insurance so they agreed to wait until insurance was purchased, let it mature a month or so and then filed the claim.

Had the guy had insurance to begin with, the company would have been on the hook. It was just a matter of timing but certainly still meets the criteria of fraud. But they didn't fake the accident or inflate the repair costs.

[AggieVFR]

I used to have a co-worker who wanted to repaint his truck so it conveniently got vandalized one night. Windows broken out, mirrors knocked off, all body panels keyed extensively, all while parked in the driveway under a street light. Nobody saw anything... :wary:

[pinecone]

I know a few.:eek2:

[Tourmeister]

:tab I once had a service manager try to get me to claim something expensive on the insurance that was not related to the claim... He even persisted when I explicitly mentioned that I considered that to be fraud :brainsnap It all went down hill from there ;-) I did not claim it.

[zero4o3]

i know of a guy who had his bike backed into in the parking lot, priced new fairings at the dealer, got cut a check sold the bike with the scratched up fairings and used the money from the insurance to buy a new bike, does that count?

[NUTT]

i know of a guy who had his bike backed into in the parking lot, priced new fairings at the dealer, got cut a check sold the bike with the scratched up fairings and used the money from the insurance to buy a new bike, does that count?

I say no. He just chose to cut his losses on the damaged vehicle in order to trade up. The insurance company just paid for the depreciation caused by the accident, thereby covering his loss.

[Tourmeister]

:tab If there is no lien on the bike, you are free to do whatever you like with the money. Under most policies you are not required to repair the bike. The insurance is simply a payment to replace the lost value. However, the adjuster may want to verify any repairs before continuing to cover the bike under the same or a new policy. I have seen where people claim to have repaired the bike, pocketed the money, then waited and later made another claim for the same damage. That is obviously fraud.

:tab When there is a lien on the bike, the insurance company usually will cut the check to you and the lien holder. This way the lien holder can ensure that the value of their collateral is protected by adequate repairs before signing off on the check. Also, most lien holders will require that you carry full insurance and again, the adjuster will not allow the policy to continue without verification of the repairs.

[TwistedFate]

:tab If there is no lien on the bike, you are free to do whatever you like with the money. Under most policies you are not required to repair the bike. The insurance is simply a payment to replace the lost value. However, the adjuster may want to verify any repairs before continuing to cover the bike under the same or a new policy. I have seen where people claim to have repaired the bike, pocketed the money, then waited and later made another claim for the same damage. That is obviously fraud.

Seen that before!

[okayf00l]

I personally do not know of any instance where someone I know scammed the insurance company.