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“Stretching the truth is common, especially in auto insurance. When drivers get into a car crash, insureds can easily include Unrelated Prior Damage, e.g., a cracked head lamp or dented fender from not be careful in a parking garage.
Today, insurers have to take an insured’s word at face value. Soft fraud, such as accidentally backing up into your mailbox and calling it a hit-and-run, is not uncommon in auto insurance claims. In fact, almost 20 percent of all policyholders admit to stretching the truth to obtain a larger settlement, and 42 percent of individuals blame high premium costs as the reason for overstating the truth.”
Read the full article on Insurance CIO Outlook.