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Insurance Fraud | Plelase help

by Amanda

My brother recently did a stupid thing and is now asking for my advice. He was driving home, lost control of the vehicle and hit a tree. No injuries but there was some major damage to the car. He apparently freaked out and didn't want to tell our parents, so he submitted a claim to his insurance company, and lies by saying he was parked in a parking lot and came out and saw his car all smashed up. The investigator told the mechanic at the autobody shop he found tree bark in the grill of the car and that the claim "doesn't look good".

After the fact he calls me, tells me the story and asks for help. He wants to know whether he should call the insurance company and admit he freaked out and lied, of if he should just do nothing and let the claim be denied. Hes a Paramedia and so an inability to have automobile insurance due to fraud would be devastating to his career.

At this point, what would be the best course of action for him - admit he lied, cancel the claim, or do nothing?

I really appreciate your help with this matter.



Hello Amanda,

This is very difficult because your brother might of already close the line and the insurance company is certainly on him. Not telling the truth will continue to make him look like he is trying to cover up something. If he does tell the truth, the insurance company will believe that he is doing this because they have already stated “it does not look good.”

It is very possible that even if he comes clean, the insurance company still denies the claim, which is a very had thing to deal with (fixing your car on your own).

It is however possible that the insurance company buys the argument that he was freaking out and that he was afraid as he is very inexperience with insurance matters. Again, it is a very difficult call.

In either scenario, it will probably affect his rates. A non truthful insured can cost the insurance company thousands of dollars. They might raise his rates regardless. Tell him to get an insurance quote now, that way, if they do raise the rates to the point that he cannot longer be insured with them, he can go to those insurance companies and ask them to honor that quote. It is best to get the quote now while the claim is pending.

He can get one here:

I hope this helps some.

Just tell him to be honest before he is flagged as a scammer.

Good Luck,

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