You might become the victim of someone else’s dishonest attempt to defraud an insurance company (or you) out of money. You can and should fight back if this happens or if you suspect it is happening.
‘Hard’ Fraud vs. ‘Soft’ Fraud
Insurance fraud includes two categories: ’hard’ fraud and ‘soft’ fraud.
Hard Fraud
‘Hard fraud’ occurs when the perpetrator concocts or causes an accident. They might pull their car in front of you, for example, wait until you become momentarily distracted, and then slam on their brakes to cause a rear-end accident.
Soft Fraud
‘Soft fraud’ occurs when the perpetrator exaggerates the consequence of a real accident. One example is a car accident victim falsely claiming to have suffered whiplash.
Take the following steps before and after the accident, to the extent that your injuries allow you to:
- Get insurance before an accident. With respect to car accident insurance, you probably shouldn’t limit yourself to the minimum auto insurance that Nevada law requires–greater coverage is available.
- Call 911 at the accident scene.
- Take photos at the accident scene. It’s particularly important to photograph the positions of the vehicles immediately after the accident, although this can sometimes work against you without the legal guidance of a Las Vegas car accident lawyer.
- In a car accident, get the other driver’s ID and insurance information. This is a legal requirement.
- Obtain the names and contact details of any witnesses to the accident.
- Obtain a copy of the accident report, if any. In a car accident involving the police, the police will prepare a report. Cooperate with them and review the report for any inaccuracies or inconsistencies.
- Request copies of the claimant’s medical records.
- Notify your insurance company, and cooperate with their investigation.
- Inform your insurance company about the false claim as soon as possible.
Above all, get a lawyer involved as soon as you can. Under the right circumstances, your insurance company might handle this for you.
The Burden of Proof
Remember this much: when someone makes a fraud claim against you, they are the party with the burden of proof. That means it is their job to prove their personal injury claim, not your job to disprove it. You have no obligation to disprove their claim until they submit enough evidence to win their claim without your counter-evidence.
If You Already Have Insurance
When you deal with an insurance company over a personal injury claim that you are asserting, your interests and the insurance company’s interests are absolutely adverse to each other. The more money you win, the more money the insurance company loses.
But when someone files a personal injury claim against you, you and your insurance company are on the same side. The more money you lose, the more money the insurance company loses. Under these circumstances, the insurance company really is your ‘good neighbor, at least temporarily.
If your insurance company suspects fraud, it is contractually obligated to defend you. Typically, this defense obligation includes hiring a lawyer at their own expense. If your insurance company hires a lawyer, they will choose the lawyer, not you. You can be certain that they will do all they can to fight the claim, at least to the extent of their own liability.
Late Claims
If you wait too long to notify the insurance company of the accident and your suspicions of fraud, you will likely lose their assistance.
Insurance Policy Limits
Beware–the insurance company is not interested in defending your claim beyond its own policy limits because it won’t have to pay the excess liability anyway.
If You Lack Insurance
If you don’t have any insurance at all, or if you don’t have enough to pay the claim against you, the assistance of a lawyer becomes even more important. Your personal assets, such as your home, could be at risk if you lose the case.
If you’re lucky, however, the perpetrator might not even bother pursuing their claim against you once they realize you lack insurance coverage.
Counterclaim for Insurance Fraud
If your case goes to court, you can counterclaim for insurance fraud. If you win, they will owe you money, not the other way around. You might even get punitive damages.
Under the Nevada statute of limitations, you have three years to file a counterclaim for fraud. The statute of limitations for a personal injury claim is only two years.
The Assistance of a Lawyer Is Critical in an Insurance Fraud Case
Don’t gamble with your future. Talk to a personal injury attorney and set up a free consultation as soon as you become aware of the claim against you.
Contact Our Las Vegas Car Accident Law Firm For Help Today
If you’ve been injured in Las Vegas, NV, or the surrounding Nevada area and need legal help, contact our Las Vegas car accident attorneys at De Castroverde Accident & Injury Lawyers to schedule a free case evaluation today.
We have three locations in Nevada for your convenience, including Las Vegas, Summerlin, and Henderson. We’re proud to serve Clark County and the surrounding areas.
De Castroverde Accident & Injury Lawyers – Las Vegas Office
1149 S Maryland Pkwy, Las Vegas, NV 89104
(702) 222-9999
De Castroverde Accident & Injury Lawyers – Summerlin Office
410 S Rampart Blvd, Ste 480 Las Vegas, NV 89145
(702) 964-1806
De Castroverde Accident & Injury Lawyers – Henderson Office
9555 S Eastern Ave, Las Vegas, NV 89123
(702) 800-3455
About the Author
Alex De Castroverde earned his law degree from Nova Southeastern University Shepard Broad College of Law and is licensed to practice in Nevada. He is a dedicated trial lawyer who assists clients across Las Vegas in a wide range of legal matters, with a focus on personal injury. Alex has successfully represented clients in cases involving car accidents, catastrophic injuries, truck accidents, motorcycle accidents and more. Click here to learn more about the outstanding case results Alex has achieved for his clients.
