Minnesota Insurance Fraud

Insurance fraud makes victims out of Minnesota insurance companies and their customers. In common terms, insurance fraud is lying to or deceiving an insurer in order to make money or to become insured. Some common fraud schemes include:

• Padding (inflating the true amount of) a claim
• Lying or Hiding (concealing) important information when applying for insurance
• Lying or Hiding (concealing) important information when reporting a loss
• Submitting False Claims
• Staging Accidents
• Failing to Report Recovered Property
• Faking Theft Claims
• Committing (home or vehicular) Arson for Profit

As a consumer, fraud should concern you since the cost is passed directly on to you in the form of higher insurance rates. You can play an important role in reducing fraud.

Fighting Auto Insurance Fraud

Persons attempting to commit insurance fraud often do so by deceiving innocent drivers during actual accidents or by involving innocent drivers in “staged” accidents. Do the following in order to minimize this risk:

• Drive defensively, keeping space between you and surrounding cars.
• When traffic slows, begin braking before the car in front of you does.
• Be careful when turning into a lane that allows two or more autos to turn left at the same time. Victims of insurance fraud are often people who float across the line when turning and then are intentionally sideswiped by a person who is “staging” an accident.
• If you are in an accident, write down license numbers of all cars involved in the accident, get the names and contact information of all persons involved and their insurers. Count the number of passengers in the other cars and get their names, addresses and any other pertinent information.
• Call the police and get a police report even if the damage is minimal. DO NOT let another driver talk you out of calling the police.
• Carry a disposable camera in your glove compartment or make use of a cell phones camera feature and take pictures of the damage to the vehicles and of all drivers and passengers in the cars.

Fighting Homeowners Insurance Fraud

It is far more difficult to involve an innocent party in homeowner fraud. However, a homeowner can help himself and help deter fraudulent claims by properly maintaining their home, and by removing or repairing items that could create tripping hazards to outside parties. Also, if someone is injured in your home, be certain that you get full information and be sure that an injured person gets any needed treatment. Carefully document any incident, including all impressions about likely injury. It may also be prudent to show healthy skepticism over any information on medical bills or claims.

Report suspicious actions such as a friend who asks you to store valuable property and you then find that they reported to his insurer that the property was stolen.

Think of insurance fraud as money out of your pocket-because it is. According to the US Chamber of Commerce, fraud adds 25% to property and casualty insurance rates.

If you are involved in an accident and you are suspicious that fraud may be involved, report it to the authorities and your insurer. Another helpful source for fraud information is the National Insurance Crime Bureau at 1-800-TEL-NICB (at the time of this writing, their Website was located at www.nicb.org).

Homeowners Insurance Agency: MN Residents Have Choices

When selecting a homeowners insurance agency, MN residents have to weigh the benefits of using a local agency against finding one online.  Billions of advertising dollars each year are poured into promoting the convenience of buying almost everything online, and the ads are very effective for the corporations that sponsor them. So it’s important to evaluate whether or not buying homeowners insurance on the internet or through a Minnesota insurance agency is the right choice for you and your family.  Here are a few points to consider.

Is it really as convenient as it seems?

The image of being able to sit in front of your home computer and compare homeowners’ policies while lounging in your sweat suit has advertising appeal.  But what happens when you really need to use the policy?  It’s annoying enough to shuffle through an endless maze of automated menus or wait on hold for hours when you just want basic information.  But suffering through that when the roof has just collapsed during a 100-year snow storm is more than anyone should have to bear. At times like that, real convenience means being able to call your local insurance agent to recommend the best contractors.

Are you getting the best possible coverage for your family?

Computers are wonderful resources and they excel at processing information quickly.  They’re very good at compiling personal data and returning a recommendation based on statistical averages.  That’s fine if your insurance needs are a cookie-cutter match with their statistical models. But what if they’re not?  And when you’re not an insurance professional yourself, how do you get answers to the questions that you don’t know you should be asking?  By working with a local insurance agency, MN homeowners get the benefit of professionals with years of experience in assessing each family’s individual needs and tailoring homeowners’ insurance policies for a custom fit.

Are you getting the best price for your coverage?

The answer to this question is related to whether or not you’re getting the best coverage.  If you purchase a homeowners’ policy online for a “bargain” price, the policy may not deliver the coverage you need.  Or you may pay for coverage that you don’t really need. You may also be able to reduce the cost of your homeowner’s insurance by combining it with other policies.  Unless you truly enjoy reading and evaluating fine print, you’ll be much better off delegating that chore to a qualified Minnesota insurance agency professional.

Faribo Insurance is at your service in 3 convenient locations: Faribault, MN… Hastings, MN… and Lakeville, MN.  Call us with your questions at 888-923-0430.  You can also email us or use the Quick Quote Insurance form.  We’ll be glad to prepare a quote for your homeowners’ insurance that is a custom fit for your needs.

Minnesota Home Owners Insurance

If We Talked About Minnesota Home Owners Insurance…

The transcript of an imaginary conversation between you and Faribo Insurance Agency about your Minnesota Home Owners policy.

Faribo Insurance: I am very concerned that you are overpaying for your personal policies and that your insurance life is more complicated than necessary.

Carl Client: I already have my homeowners policy with you. Are you saying that it is overpriced?

Faribo Insurance: No, but you’ll enjoy a nice discount on your homeowners and auto when you insure both policies with us. Plus, you’ll make your insurance life easier with us as your only agent.

Carl: What kind of discount are we talking about?

Faribo Insurance: When we write your auto policy with the same company as your homeowners, you’ll receive a discount on each. That’s quite a savings. Plus, there are other benefits as well.

Carl: What other benefits will I receive if I switch my auto policy to your office?

Faribo Insurance: In addition to the savings, we’ll help you to match up your individual needs with the right auto policy coverages and options. Currently, by dividing your policies among multiple insurers, you are doubling the risk that you and your family are improperly covered. You need one team of insurance pros to coordinate all of your personal property and liability protection. And that’s us.

Carl:What if I have a claim on my home and car at the same time? Right now, I have to contact two agents. How does that work if you provide both of these policies?

Faribo Insurance: Good question! By carrying your home and car policies with us, you’ll only have to file one claim, not two. Common examples include heavy storms where trees fall over onto houses and cars and instances where drivers accidentally damage their own garage while pulling in or out.

Carl: This all sounds good. How soon can I get a quote on my car insurance with you?

Faribo Insurance: It’s easy. Just give me a call at 888-923-0430,  email me or use our Quick Quote Insurance form and I’ll promptly prepare a special proposal for you. I’m sure you’ll like what you see.