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What Is the Penalty for Filing a False Insurance Claim in New Jersey?

May 6, 2019

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When you file an insurance claim, the process can be long and frustrating. Still, there are some people who intentionally abuse the process by filing false claims. In New Jersey, as in most places, the state takes these claims seriously. The penalties for insurance fraud are onerous, so missteps can leave you in big trouble. Working with an experienced attorney can thus help you file your claims properly.

What Is Insurance Fraud?

If you file an insurance claim, you have an obligation to both be honest and include all relevant details. If you either lie in your claim or omit information that would affect your claim, the State can charge you with insurance fraud. This includes problems with applications, using fake insurance cards, or filing false claims, and it can occur under many kinds of insurance:

  • automobile accident claims
  • health insurance claims
  • workers compensation claims
  • Medicare or Medicaid claims
  • disability or unemployment claims

This is a third-degree felony in New Jersey. If you are convicted, you can face jail time and fines up to tens of thousands of dollars. The punishment varies depending on the kind of insurance and the type of fraud, but any will leave you with a felony on your record and a significant dent in your finances.

Avoiding Insurance Fraud

Because insurance fraud subjects you to criminal charges, you need to be careful when applying for or using insurance coverage. An error in judgment or an honest mistake can result not only in your losing coverage for your claim, but having to defend yourself with a great deal at stake. And the state is even proposing rules to reward people who report fraud!

Insurance companies function by paying out as little money as possible. If you file a claim and the administrators see any kind of irregularity, you risk having your claim denied and possibly being prosecuted. If you have to file a claim after an accident or injury, contact Stern and Stern first. We will help you with the process and make sure you prepare any insurance claim correctly.