Ohioans urged to protect themselves from insurance fraud, one of the most prevalent crimes in the United States.
Gov. Mike DeWine has declared April as Fraud Prevention Month in Ohio and Department of Insurance Director Judith L. French is urging Ohioans to protect themselves from insurance fraud, one of the most prevalent crimes in the United States.
Insurance fraud costs consumers and businesses billions of dollars each year. According to the Coalition Against Insurance Fraud, insurance fraud creates a $308.6 billion annual economic burden, totaling $932 for every American and more than $70,000 over an average lifetime.
“Insurance fraud occurs in many forms and impacts all of us by making insurance more expensive,” said French. “I encourage Ohioans to learn the warning signs. Anyone who suspects fraud or has been victimized should report it to the Ohio Department of Insurance. Perpetrators can face financial penalties, imprisonment, and a permanent criminal record.”
The Ohio Department of Insurance protects consumers by partnering with investigators from insurance companies and government agencies, as well as law enforcement and prosecutors, to take action against those who commit insurance fraud. Last year, the department received 9,014 allegations of misconduct and fraud. These referrals led to 1,208 investigations, the identification of 215 potential law violations, and administrative or criminal action against 226 individuals.
Common scams by malicious actors
Fraud is often committed by predatory individuals or unlicensed entities. Common scenarios include:
- Bogus policies: Fake companies or agents defraud consumers, including posing as Medicare representatives, by collecting personal information and premiums for non-existent policies. These scams are often marketed using the names of legitimate companies but at significantly lower prices than competitors.
- Premium diversion: A dishonest agent stealing a customer’s premium instead of sending it to the insurance company. The consumer believes they are covered, only to find the insurer has canceled the policy for non-payment.
- Contractor scams: Dishonest contractors may pressure homeowners into letting them handle insurance claims for roof repairs or replacements, often inflating costs or performing subpar work.
Fraud committed by consumers
Insurance fraud can also be committed by consumers, often by misrepresenting facts to gain an insurance payout. Common examples include:
- Inflated claims: Exaggerating the value of stolen or damaged items following a theft or water damage.
- Post-accident coverage: Purchasing auto insurance immediately after an accident and attempting to claim the incident occurred after the policy was active.
- Application fraud: Knowingly providing false information on an insurance application to secure lower rates or coverage.
Tips to outsmart scammers
- Check contact information: Be wary of agents or companies that lack a physical address, have no phone number, or are consistently difficult to reach.
- Verify documentation: If you purchase a policy but do not receive an insurance ID card or a copy of your policy in a timely manner, treat it as a red flag.
- Guard personal information: Medicare will not call, visit, or enroll you unless you contacted them first. Never share personal information, such as Medicare, Social Security, bank, or credit card numbers, with anyone who reaches out to you unsolicited by phone, email, text or in person.
- Pause before paying: If you have doubts, stop before signing paperwork or paying a premium. Legitimate professionals will respect your need to verify their credentials.
- Verify licenses: Contact the Ohio Department of Insurance at 800-686-1526 or visit insurance.ohio.gov to confirm the license status of any company or agent.
- Confirm payments: Contact your insurance company directly to ensure they have received your premium payment.
- File claims first: Always contact your insurance company to file a property damage claim yourself, including for roof damage, before hiring a contractor.
How to report insurance fraud
- If you suspect insurance fraud or misconduct, report it to the Ohio Department of Insurance at 800-686-1527, *********@************io.gov” target=”_blank” rel=”noopener” aria-label=”od*******@************io.gov, This link will open in a new window”>od*******@************io.gov, or insurance.ohio.gov.
Metro Monthly is a local news and events magazine based in Youngstown, Ohio. We circulate throughout the Youngstown/Warren Mahoning Valley region (and beyond) with print, online and flipbook editions. Be sure to visit our website for news, features, restaurants, local history and essential Valley events. We offer print and website advertising. Office: 330-717-8785.
© 2026 Metro Monthly. All rights reserved.
