How to avoid insurance fraud and scams

Learn about insurance fraud

If it sounds too good to be true, it probably is. Insurance fraud occurs when anyone tries to make money from insurance transactions by deception.

Insurance cheats range from organized criminal enterprises, to unscrupulous doctors and lawyers, to dishonest body-shop operators, to people in the neighborhood. Insurance fraud is the second most-costly white-collar crime in the U.S., behind tax evasion.

Some examples of the types of insurance fraud that are investigated by the Criminal Investigations Unit include:

  • Automobile collision
  • Automobile property
  • Medical
  • Life
  • Disability
  • Fire
  • Property
  • Private health insurance

Don't become a victim of an insurance scam

  • Make sure the company and agent are licensed to do business in Washington state.
  • Research before you sign up for anything. If you're unsure, call us at 800-562-6900.
  • Ask your friends if they're happy with their insurance agent or company.
  • If coverage seems too cheap, be suspicious.
  • Only buy state-licensed products. If an agent tries to sell you an Employee Retirement Income Security Act (ERISA) or union plan, call us right away.

See also

Need more help?