Little White Lies, Part 1: When a Lie Becomes a Crime

What exactly is insurance fraud? We’ve mentioned the major crime in previous blogs but you may not realize that you don’t have to be a major criminal to commit the act. Did you know that insurance fraud can cost the average American family $400 to $700 in increased premiums each year? And all it takes is one little white lie.

In this five-part series, the Law Offices of Anthony Carbone plans to educate our readers on how the most simple little act of defiance can be insurance fraud. Today, we meet Tommy and James, two friends who don’t realize that doing a favor can lead them straight to jail:

Tommy recently purchased a new car. While looking for car insurance, his bad credit and even worse driving record has prevented him from getting him a reasonably priced insurance premium. When complaining about his problem with James, the two come up with an idea: James will apply for car insurance under his name in order to get Tommy a better deal. James was able to get a great insurance rate. Tommy gives James the money to pay for the insurance policy. And all is right in the world.

Or is it? Although James was just helping Tommy out of a jam, this is a case of insurance fraud. Although many think that insurance fraud is only for financial gain, the fact that James had lied about being the owner of Tommy’s car, the fact that falsified information was given, Tommy and James were trying to defraud the insurance company by getting Tommy a lower rate in his insurance. And if Tommy happens to get into an auto accident? Then James will be the one who will be punished with higher rates.

For more information on insurance fraud or if you believe that your little white lie will come back to haunt you, contact the Law Offices of Anthony Carbone today for a free consultation.