Nebraska Department of Insurance

NEBRASKA DEPARTMENT OF INSURANCE INSURANCE FRAUD PREVENTION DIVISION 941 O Street, Suite 400 Lincoln, NE 68508-3639

Automobile Accident Fraud Hints

It is important to remember that the hints listed below are merely possible "red flags" that there may be some evidence consistent with an insurance fraud scheme.  Any one or two of these by themselves, may not raise your suspicion; however, when you have several of these hints present or a pattern begins to emerge, you should investigate further or forward your suspicion to the Insurance Fraud Prevention Division.

1. Minor accident with large estimate of damages.
2. No tow truck record for a vehicle declared not driveable.
3. Expensive damage claims even though the vehicle remains driveable or did not require towing.
4. Photographs show only damage areas (can't identify make/model).
5. A third party reports the claim.
6. Serious accident with expensive physical damage, but only minor, subjectively diagnosed injuries with little or no medical treatment.
7. Claimant vehicle was struck by a rental vehicle shortly after the rental occurred.
8. The accident occurred on private property near residence of those involved.
9. Documentation is not available for damage estimate or repair.
10. The damage estimate is inconsistent with description of the loss.
11. The Vehicle Identification Number (VIN) does not match the damaged vehicle.
12. The handwriting on the estimate matches that of the claimant/insured.
13. All damaged vehicles in a reported accident are taken to the same repair shop.
14. All vehicles involved in an accident are actually repaired by the same repair shop.
15. The repair shops used are not actually equipped to make repairs listed on the estimate.
16. Claimant vehicles are not readily available for appraisal.
17. There is no lienholder listed for an expensive, late model vehicle.
18. Vehicle to be driven or shipped out of state for repair.
19. The owner wants to retain salvage of vehicle.
20. Vehicle is repaired before the loss is reported.
21. No police report or an over-the-counter police report for a serious accident.
22. Accident occurred shortly after one or more of the vehicles were purchased or registered.
23. Accident occurred shortly after the addition of comprehensive and/or collision coverage to the policy.
24. The insured has a history of accidents within a short period of time on one policy.
25. The insured/claimant has an active claims history.
26. Even where the damaged vehicle was purchased before inception of policy and date of loss, the insured has no record of prior insurance coverage.
27. Letter from attorney is dated the day of the accident or shortly thereafter.