What happens though if you are in an accident and realize your policy has lapsed or you forgot to call and add ‘full coverage’ cause you are a careful driver? Do you try to sneak one by on the insurance company? I have seen it happen in our office. A policy is started or coverage is added and then a day or two later a claim is turned in. It may seem like it doesn’t hurt anyone (and really helps you) but this is fraud and can mean jail time.
I just read the New York State Insurance Department report of a guy who crashed his motorcycle, bought an insurance policy, and filed a claim for $8,800 all within one hour.
Marrone was uninsured on the morning of May 14 when he lost control of his 2007 Suzuki motorcycle and ran off a rural Oneida County road. Marrone, who was not badly hurt, then used his cell phone to contact State Farm Insurance from the accident scene to insure the motorcycle. Less than an hour later, he called the insurance company again to report that he had been involved in an accident and file a damage claim. The claim was denied.
Mr. Marrone was arrested for insurance fraud and if convicted, could be sentenced to up to three years in prison. Wonder if it was worth the chance?
Have you ever been tempted?