Nobody Loves a Fraudster - Auto Insurance Fraud Exposed

One of the funniest episodes of Everybody Loves Raymond begins with Ray’s parents backing their car through Ray’s living room wall and into his house. Ray’s wife, Debra, is understandably upset. She demands that her father-in-law, Frank, contact his insurance agent immediately. “I’m not sure my insurance is current,” Frank says, knowing that it’s not.

Don’t be like Frank Barone.

Insurance Fraud - It’s Serious Business

Everybody Loves Raymond is a funny show, but insurance fraud is serious business. It’s estimated that as much as $13 billion worth of auto insurance fraud is committed each year in the United States. And guess who ends up footing the bill? We all do. The money to pay fraudulent claims doesn’t materialize out of thin air, and only so much can come out of insurance company profits. Instead, a portion of every insurance payment you make ends up in the pockets of insurance criminals. Worse yet, if you’re a direct victim of fraud, your insurance premiums will go up even more. So what can you do to avoid being a victim, and to cut down on insurance fraud in general?

In the Event of an Accident, Always Call the Police

In the Everybody Loves Raymond episode, the Barones first mistake is not filing a police report. This error is especially egregious since Ray’s brother, Robert, who just so happens to be a policeman, is standing right in the living room when they decide not to file the report.

Sometimes when accidents occur and the damages are minor, the people involved decide not to call the police. Instead, they just exchange insurance information and continue on with the day’s errands. The problem is that this is a favorite tactic of insurance fraudsters, who normally don’t want to get the police involved.

Carefully Examine Your Repair Shop Bills

Since Frank’s car insurance coverage has expired, Ray and Debra decide to file a homeowner’s claim, but they insist that Frank pays the $1000 deductible. Somewhat reluctantly, Frank agrees, but there’s a caveat - he wants to find a contractor who will send Ray’s insurance company a bill for $1000 in excess of the actual damages, and then pay Frank the difference. Frank says that he’s done this many times before, and that it’s “built into the insurance system.” In reality, it’s built into higher premiums for law-abiding consumers, and it’s a serious crime.

Whenever you are awarded an insurance claim, be sure to carefully examine your repair shop bills. In Frank’s case, the repairman was going to forward him the excess money received from the insurance company, but unscrupulous shops can just as easily keep it for themselves. Worse yet, if your repair shop is found to be involved in insurance fraud, you might be a suspected accomplice. One way to avoid this potential nightmare is to thoroughly review your bills to make sure that everything is legitimate.

In the Everybody Loves Raymond episode, Debra puts her foot down. She refuses to be involved in any illegal activity. Frank is upset, but ultimately, he relents. After all, he doesn’t have a leg to stand on. If you’re ever in a situation where someone tries to pressure you into committing insurance fraud, don’t do it. Don’t be like Frank Barone - be like Debra, and take a stand. Insurance fraud is immoral, illegal, and could land you in jail. Aren’t your integrity and your freedom worth more than the cost of your deductible?