Insurance fraud is a significant concern, with the FBI estimating that it costs Americans between $400 and $700 annually in higher premiums. Common scams include roofing and contracting fraud, ghost brokers selling fake insurance, staged auto accidents, and towing scams that impose excessive fees. To protect against these scams, consumers are advised to understand their insurance policies, verify the legitimacy of brokers and contractors, and document all claims processes thoroughly. Additionally, reporting any suspected fraud to insurance companies and relevant authorities can help combat these illegal practices.
