Penalties for Making a False Claim
If an insurance adjuster suspects that even a portion of claim is exaggerated, payment for the entire claim – even the valid losses – could be put in jeopardy. Individuals who have fraudulent claims turned down may have difficulty obtaining insurance in the future. Because inflating or exaggerating a claim is a crime, insurance companies may contact the police to press charges.
There is no such thing as a victimless crime. Everyone who buys insurance pays the price of insurance fraud and inflated or exaggerated claims in their premiums.