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Insurance Fraud FAQs

Insurance fraud is any act committed with the intent to obtain an illegitimate gain from an insurance process. The most common methods include:

  • Staged car accidents
  • Fraudulent car thefts
  • Inflated losses
  • Fraudulent injury claims
  • Application fraud
Anyone has the capacity to commit insurance fraud, including individuals or organized groups.

Some examples include staged car accidents, solicitation of provider service, parking lot schemes, “jump-in” passenger accidents or providing an incorrect address to avoid premiums. Insurance fraud can also involve legitimate losses that have been enhanced to increase the amount paid under a claim, such as claiming damage to personal property in a homeowners loss when that property was actually unaffected by the loss.

The Coalition Against Insurance Fraud estimates that insurance fraud steals more than $308 billion every year from American consumers. While some believe that insurance fraud only impacts insurance companies, it actually represents a significant financial impact for consumers. The FBI estimates that insurance fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums.

Amica's Special Investigations Unit (SIU) is an investigative and informational resource that assists the claims, underwriting and life departments with identifying and investigating suspected fraud. Amica’s SIU also works closely with various law enforcement agencies to report suspected insurance fraud for further investigation and potential prosecution.

Amica is one of over 1,200 insurance companies that supports the National Insurance Crime Bureau (NICB), an organization that helps identify, detect and prosecute those who commit insurance fraud. Our continued vigilance and cooperative efforts with agencies and state insurance departments help reduce the payment of fraudulent claims. 

A few simple precautions can make a world of difference for you and your insurer. When an accident occurs:

  • Call the police. They're trained to investigate accidents and file the necessary reports.
  • Document the accident scene. Whenever possible, and if safety permits, take photos of the car’s damage and position after the accident. Make quick notes to yourself about the time, date and location of the accident, and anyone who was involved. Report accidents to Amica as soon as possible. 
  • Report schemes. If someone asks you to be involved in an insurance fraud scheme, notify the Amica Special Investigations Unit or your file handler.

If you have information that may be helpful to Amica in identifying insurance fraud, please call our toll-free Fraud Hotline at 877-407-3344 (available 24 hours a day). All calls to the Amica Fraud Hotline are completely anonymous and confidential.

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