Contact Us Today (813)-282-9330

Consumer Blog

The Myth of Auto Insurance Fraud

Posted by Sami Thalji | Aug 26, 2021

Page 1 in the auto insurance industry misinformation playbook is to claim that fraud, perpetrated by everyday consumers, is the reason why rates continue to increase. While there may be individual instances of attempted fraud, the reality is that these claims of widespread fraud by the auto insurance industry are entirely made up. A recently unsealed federal whistleblower lawsuit shines some light on the real widespread insurance fraud perpetrated on American taxpayers and the bad actors are....wait for it....the auto insurance companies. The lawsuit shines a light on the despicable and pervasive auto insurance company practice of soaking American taxpayers out of billions of dollars every year. In sum, auto insurance companies are allowing Medicare and Medicaid to cover medical bills that the auto insurance companies are responsible for. Not only are they not reimbursing Medicare and Medicaid but they are not even informing them of the auto accident claims, leaving Medicare and Medicaid in the dark as to their rights to collect. Auto insurers are saving billions of dollars every year by not paying bills they are legally and contractually obligated tp pay and sticking consumers with the bill. For those that don't follow, your tax dollars fund Medicare and Medicaid so the billions of dollars they are wrongfully paying comes out of your pocket. We have seen this type of fraudulent behavior from the insurance industry in the past when United States Senator from Florida and all around bad actor and creepy guy, Rick Scott oversaw the largest single Medicare fraud in US history when the company he founded and ran, Columbia/HAC was fined $1.7 billion dollars for similar conduct. Nobody steals more from consumers than insurance companies, so next time you see a commercial paid for by the insurance company accusing everyday consumer of fraud just keep in mind that they have absolutely zero credibility.  

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...


Our law firm only represents consumers and we have built our entire practice around that fact.