Insurance fraud is a deception made for personal gain. Fraud will most often occur at the time of a claim.

When a person is involved in a car accident there is likely to be some form of injury suffered. To exaggerate the extent of the injury is a common form of fraud. This is when you can find the insurance company in the courtroom trying to prove that your injuries are not debilitating or do not exist at all.

Another situation ripe for fraud is when you are completing a loss notice for the insurance company after a break in. Few people fully realize that if you deliberately mislead the company as to the value on one item then you can lose the entire claim. The importance here is the word deliberate. If you make an honest mistake, that can usually be substantiated.

Insurance companies know that people can see an insurance claim as an opportunity to "get even for all money I have paid over the years" and so are very careful about the claims process.

Commit fraud and the insurance company will deny your entire claim. You will go to high risk insurance and pay more money for your insurance. You can be charged under the criminal code. You could lose your job due to having a criminal record.

If you have any questions about your claim then ask your adjuster or appraiser from the insurance company. If you are open and honest you should not have any problems. Talk to your adviser. Your agent or broker cannot act on behalf of the insurance company in regards to a claim but they can help explain some of the process to you.