According to a study done by the Coalition Against Insurance Fraud, the cost of illegitimate insurance claims average around $80 billion each year. It is in a company’s best interest to verify each insurance claim mainly because fraudulent claims end up raising the price of insurance for everybody else as well.
Each year, approximately $40 billion are wasted on fraud. These are handed over to customers in the form of high premiums. American families are said to pay almost $400 to $700 each year in the form of premiums.