Jump to Navigation

Areas of Practice

Effective Insurance Defense Legal Counsel for Southern Louisiana

Fraudulent claims can have big financial impacts on auto insurers

The claims auto insurers receive can vary in their validity. Sometimes, among the invalid claims such an insurer receives are claims aimed at defrauding it. For example, sometimes, dishonest individuals stage accidents and file fraudulent insurance claims in relation to such “crashes.”

Recently, over a dozen arrests were made in relation to an alleged staged accident scheme here in Louisiana.

Authorities claim that the scheme involved at least seven fake crashes in southwestern Louisiana. It is alleged that the scheme defrauded insurance companies to the tune of over $30,000.

Insurance company complaints led police to investigate the alleged scheme. Recently, 13 arrests came out of this investigation, with police still looking for a few other individuals thought to be connected to the scheme.

As can be seen from the amount of money the alleged scheme is claimed to have involved, fraudulent claims can end up having major financial impacts on auto insurers. So, one thing that can be very important in an insurer’s efforts to protect itself financially is keeping an eye out for red flags that a claim might be fraudulent when reviewing the auto insurance claims it receives.

Of course, what fraud detection steps they take is not the only thing that can have considerable financial impacts for auto insurers when it comes to their handling of claims. Another thing that can be impactful on this front is how an insurer responds when a person challenges a finding that a claim was invalid or qualified for less in benefits than the claim asked for. Many things could lead to such disputes, including customer misunderstandings of what a given policy covered. Whatever led to such a dispute, it can be crucial for an auto insurer to give careful thought and attention to how to address the dispute.

Source: Insurance Journal, “Louisiana Fake-Crash Scheme Leads to 13 Arrests,” May 30, 2017

No Comments

Leave a comment
Comment Information

How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Our Office Locations


Lafayette Office
100 East Vermillion Street
Suite 201 
Lafayette, LA, 70501
Phone: 337-446-2442
Fax: 337-269-1753
Map & Directions

New Iberia Office
800 South Lewis Street
Suite 205
New Iberia, LA 70563,
P.O. Drawer 12410, New Iberia, LA, 70562-2410
Phone: 337-352-2310
Fax: 337-364-9822
Map & Directions

Subscribe to This Blog's Feed FindLaw Network