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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. To access copies of these publications, select this link.

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 Proof? Never pay for a premium in cash. Pay by check or a money order made out to the insurance company directly or to the agency—not to the individual agent or broker. In addition, always request a receipt.

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. To view the full text of Regulation 60, select this link.

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. For additional consumer information, select this link.