Insurance companies typically collect a “fair market value” of the premium from you when you sign up for coverage.
But when you file for a claim and claim a claim, you may not be getting a receipt from your insurer.
According to a new report from the National Insurance Crime Bureau, if you file a claim on your own, it could take up to three months for the insurer to send you a receipt.
Insurance companies can charge you up to 30% more for insurance than they actually paid.
“You may be charged the difference between what you paid and what your insurer actually paid,” said Nicole Brown, the NICB’s director of investigations.
“That can make your car payment much more expensive than you were told it would be.”
So what happens if you don’t file a claims claim on time?
Insurers have a “frozen” amount of money in their account, meaning that they don’t have to send the reimbursement to you.
So if you wait too long, your premium could increase by $1,000.
That extra amount could also be transferred to your insurance company.
If you’re not notified, that could cause the total cost to be higher.
The NICBS report also found that insurers often have different billing terms for different types of policies.
In some cases, your insurer may charge you more than the actual value of your policy, while in others, it will charge you less than the price it actually paid when it issued the policy.
Insurers are required to report to the NOCB on their practices in providing a refund for claims.
The NOCBs findings are the latest in a string of insurance frauds that have been revealed in recent years.
In January, an insurance fraudster allegedly used a scam to claim more than $100 million in insurance claims.
In March, another fraudster used a fraudulent claim to steal over $50 million in car insurance claims and then used that to defraud the government.