What can be the consequences of insurance fraud with the car?

#2 Termination of your auto insurance policy

Insurance fraud is taken very seriously by insurers. They do not like to see people who commit fraud as policyholders, which is why an insurance policy is almost always terminated if insurance fraud is found. If you have multiple policies with the same insurer, the insurance company will also look at whether these policies will also be terminated. You have betrayed the trust of the insurer, which is the immediate reason for termination of the insurance policies. The insurer can no longer count on you and no longer trusts you to comply and therefore almost always chooses to terminate all current insurances.

#3 Registration of personal data in insurer's fraud register

When your insurer terminates car insurance, it also stores your information in the insurance company's internal registry. Sometimes they talk about a "blacklist," but there is no such thing. The insurer does record when and why they discontinue insurance. The purpose of this is to alert the organization and keep it alert to new applications from you, for example. These internal records cannot be viewed by other insurers, but will prevent you from being able to take out insurance again with the insurer where you committed fraud.

#4 Registration with CIS Foundation

Foundation CIS stands for Foundation Central Information System. In their database they keep all kinds of important data that can be of great value to insurers. If you are found to have committed insurance fraud, you will receive a CIS registration. You are then listed in the database, with the reason for registration and your personal information. The data can be viewed and requested by other insurers and agents. The purpose of this database is to reduce the risks for insurers in new applications and prevent fraud as much as possible.

A CIS registration due to fraud makes it very difficult to get a new car insurance policy. An insurer you apply to always checks if you are registered in the CIS database before accepting an application. If the insurer then sees that you are registered for fraud, there is a very good chance that they will refuse your application. In that case, you can really only turn to insurance company De Vereende. De Vereende is specialized in insuring special cases. Due to the wide acceptance policy, even with a CIS registration, you can still get car insurance.

#5 Reporting to the Insurance Crime Control Center (CBV).

To support insurers in tackling fraud and other forms of insurance crime, there is a special department within the Association of Insurers; the Center for Combating Insurance Crime (CBV). Did you know that insurance fraud can also have a major impact on your further career? If you apply for a position within the insurance industry or at a financial institution, chances are that the company will check you out with the CBV. If they see that you are registered for insurance fraud, they may reject your application; it does not exactly make a good impression.

#6 Financial implications

Financially, insurance fraud also certainly has some consequences for you as a fraudster. First, you must pay a standard fine of €532. Next, the investigation costs incurred are also recovered from you and you must pay them. These investigation costs stem from the investigation that insurers commission when they suspect fraud. This is because they have to be sure that fraud is actually taking place and they have to be able to prove it. When an external investigation agency or expert has to be hired, the cost of the investigation can be quite high. Finally, getting a new car insurance policy will be a lot more expensive than usual, mostly due to a higher premium. If you take out insurance with De Vereende, you have to pay the premium for the first three months in advance as well as pay a deposit. If you are then late in paying the premium, De Vereende can use this deposit to offset the outstanding premiums.

#7 Reporting to the police

Finally, the most serious consequence comes into play; reporting to the police by the insurer. However, in practice this does not happen very often. It is of course a drastic step to take and is usually only done when very high amounts of fraud are involved or when organized crime is involved.