Insurance Fraud?
May.26, 2010 in
Fraud
Is it considered insurance fraud if someone files a car insurance claim and uses the money for something other than fixing the car?
I don’t plan on doing it. I’ve just heard other people talk about it and started wondering.
those who are saying no: do you know for a fact? I know they don’t want you using the money for other things, just wanna know for sure
May 26th, 2010 at 2:36 pm
i dont think so, but then again I could be very wrong…
good question though
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May 26th, 2010 at 3:42 pm
No. Its your insurance money, you can do whatever you want with it, unless the money is intended to pay for other people´s car beeing fixed, and in those cases, insurance takes care directly.
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May 26th, 2010 at 4:36 pm
go to Allstate
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May 26th, 2010 at 5:44 pm
Insurance Fraud would be wrecking your car or home on purpose then using the money for something else.
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May 26th, 2010 at 6:36 pm
This is a legal question, you better check with a lawyer.
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May 26th, 2010 at 8:41 pm
no you dont have to use the money to fix your car
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May 26th, 2010 at 10:45 pm
it is not illegal to put in a legitimate claim and receive a check for the damage amount. The choice to repair the car is up to you, you may keep the money, its called compensation. It is however illegal to receive a full payout and then repair the car for less at the same or a different repair shop. The insurance company would want return of the unused funds. This proses of keeping the surplus funding is called betterment. It is about the same as collecting twice for the same accident. Or for collecting compensation on previous damage. It is difficult, without auditing and diligence, to ascertain weather or not a person has done this.
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