![]() This would probably constitute soft fraud. When they went to report the damage, they exaggerated slightly in hopes of getting a larger claim. If the opportunity presents itself, however, they might be tempted to incorrectly use it to their benefit.įor example, assume a Massachusetts resident was running errands in Winchester, MA and was involved in a fender bender. Unlike with hard fraud, a policyholder doesn’t deliberately set out to rip off their insurer. Soft fraud, in contrast, is normally an act where policyholder takes advantage of an opportunity available to them. In this case, the very claim itself is typically invalid - either being made up by the policyholder or intentionally caused by them. The term “soft fraud” is used to distinguish this form of fraud from what’s known as “hard fraud.” Hard fraud is normally a deliberate attempt to invent or stage an incident that would be covered by an insurance policy. ![]() Specifically, it’s normally deemed “ soft fraud.” Providing false answers, including just fudging them slightly, is generally considered a form of insurance fraud. ![]() If a Massachusetts Resident Gave Their Car Insurance Company False Information When Applying for a Policy, What Would Happen? Fudging Answers is Often a Form of Fraud Here’s a look at what might happen if a Massachusetts resident wasn’t honest and provided false information when applying for car insurance. It’s important to still answer these other questions honestly, though. Other questions, like how many miles a vehicle is driven each year, are a little more difficult for insurance companies to check. Some of these, such as a vehicle’s VIN, make, and model, are easy for insurers to verify. When applying for auto insurance, drivers must answer a slew of questions. ![]()
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