Over the years of paying your Colorado insurance premiums on time and in full without making a claim for the last few years, perhaps you wondered if you were wasting money on a policy that you do not use. Should you do what you can to get some of that money back by committing insurance fraud?

Familiarize yourself with the different types of insurance fraud with help from The Street. While you educate yourself, think about how much you stand to lose should you face legal charges of insurance fraud.

False claim 

There may come a time when you do need to file a claim. To make the most of your situation, you may include a bit of false information in the hopes of inflating your claim. Some people stage accidents or intentionally inflict damage on a car or house and file a claim. Both instances are examples of false claims.

Application fraud 

When applying for a new policy, you may “stretch the truth” a bit. Examples of application fraud include intentionally claiming that a vehicle is worth more than it actually is and giving false details about your physical health. Note that making an honest mistake on your insurance application is not application fraud. It is when you knowingly provide inaccurate information that you step into fraudulent territory.

Identity theft fraud

Maybe you do not have health insurance, but your friend, who looks a lot like you, does. You want to receive less-expensive healthcare by using your friend’s insurance information for a medical visit. Giving in to such temptation is an example of identity theft fraud.

Rather than an abstract scenario, you may have committed one of the above instances of insurance fraud. If so, work with an experienced legal professional about building a defense.