Insurance Companies Battle Upswing in Questionable Claims

A new study by the National Insurance Crime Bureau confirms that the recession has produced a large increase in what insurance companies refer to as "questionable claims," or cases that may involve fraud. Previous media reports have noted that some states have seen this trend take the form of more car arsons, which were said to have increased 27 percent over the past year.

The anti-fraud organization also found a 24 percent increase in the number of auto owners who had simply abandoned their vehicles in some remote area. This trend was said to particularly involve large vehicles with low fuel economy like SUVs. This is because the drivers in question were having enough difficulty making monthly payments, let alone paying for higher gasoline costs. However, these statistics pale in comparison to the whopping 407 percent increase in hail claims reported.

Whether on a home or auto, some policyholders try to get larger claims by deliberately causing extra damage and filing false claims - which results in insurance companies passing along the added expense to others.

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