Rewards for Reporting Insurance Fraud

Rewards for reporting auto insurance fraud depend on the state and the specific circumstances. Here are some key details:

1. State-Specific Reward Programs

  • Some states offer monetary rewards for reporting insurance fraud, such as California, Florida, and Texas.
  • The amount varies, but it can be a percentage of the recovered amount or a fixed reward.

2. National Insurance Crime Bureau (NICB) Reward

  • The NICB offers rewards up to $25,000 for information that leads to a conviction in significant fraud cases.
  • You can report fraud anonymously via 1-800-TEL-NICB or NICB’s website.

3. Whistleblower Laws (Federal & State)

  • Under the False Claims Act, whistleblowers may receive 15% to 30% of the amount recovered if the fraud involves federal funds (e.g., Medicare fraud in auto injury claims).

How to Report Auto Insurance Fraud:

  • Contact your state’s insurance fraud bureau (each state has one).
  • Report through the NICB or the insurance company’s fraud department.
  • If it involves federal fraud, consider filing a whistleblower lawsuit with a lawyer.