Wielding the Weapon of Insurance
You probably didn’t realize an insurance policy could be used as an avenue of revenge, but Clearsurance recently released a report, Insurance Revenge, that explains how insurance revenge is a real threat and something to watch out for if you’re going through a divorce or separation.
It makes sense that fraudulent insurance activities could cost you in the financial department, but they could even cause you physical harm through dangerous situations and cumulative stress.
An angry ex-partner could even damage your credit rating through their access to your account information.
4 Types of Insurance Policies Used as Revenge
Even though insurance revenge is illegal, it still happens, so you’ll need to be on guard. In addition, Clearsurance specifies that any type of insurance can become a weapon.
- Car insurance. Changing the title on a car can be a hassle, and if both parties are cooperative, a separated spouse might remain on a car title indefinitely. If the insurance goes unpaid and the customer is dropped, both owners will face the consequences.
- Life insurance. Separations are messy, and an angry participant may decide to cancel a life insurance policy without the consent of the other. Losing a life insurance policy could be devastating. Term life insurance costs more as you age, and whole life insurance builds value over time, so losing either can be costly.
- Home insurance. Fake claims and intentional damage can mar the insurance record of the other party in a divorce situation. It could also cause the innocent party to become the suspect of fraud.
- Renters insurance. Since renters insurance is similar to home insurance, an angry ex-partner could commit insurance fraud similarly to a home insurance fraud situation.
If your former partner damages your home, you could be hurt in the process or in the following damage repercussions.
With over 100,000 auto-related scam reports annually, insurance companies and law enforcement authorities may not immediately recognize when a former spouse tries to use insurance policies against their partner. That’s why you must take the initiative to monitor activity and prevent fraud.
Preventing Insurance Revenge
Fortunately, Clearsurance.com shares ways to protect yourself from becoming a victim of insurance revenge by taking some simple steps.
Guard Your Insurance Information
First, notify your insurance providers of your separation or divorce. If they have it on record that you’re not a couple, they should be more careful making changes to your policy without direct communication from you.
Next, remember to include shared insurance policies in your divorce judgment so the liability is clear. Then, be sure to update all your insurance policies to remove your former partner’s name and information. They can’t change or cancel your coverage if they’re not listed on your policy.
Protect Your Property
You also need to protect your property. For example, change your locks so your former partner can’t access your home. You’ll also need to change and update any online passwords that they could use to access your personal accounts.
Monitor Your Credit
Monitor your credit report carefully and immediately address any suspicious activity or ill-intent purchases. Watch for the following red flags:
- Credit score decreases
- Large purchases
- New accounts opened
And keep and keep physical financial information away from anywhere someone could find it and use it against you.
Work With an Attorney
Finally, work with a trusted attorney for assistance in these steps and others that may be necessary to protect yourself from insurance fraud. Even though an attorney costs a lot of money, you could be in a worse financial situation without one, especially considering that insurance can be used as a weapon against you.
Insurance revenge can be devastating, and you could become a victim if you’re not careful. Even if you do nothing wrong, your insurance rates could skyrocket, your insurer could drop you, or you might have difficulty securing insurance.
Additionally, you could face ruined credit, which will make securing future loans more challenging.
By watching for insurance revenge, you can prevent it from ruining your life and causing long-lasting financial and physical damage.
Read Clearsurance’s complete report: Insurance Revenge: What It Is and What to Look Out For.