What is the primary purpose of insurance fraud?

The primary purpose of insurance fraud is to gain a benefit unlawfully from insurers. This typically involves providing false information or concealing crucial facts to obtain payment or services that would not be awarded under truthful circumstances. Engaging in such fraudulent activities can lead to significant legal repercussions, as it undermines the integrity of the insurance system and imposes additional costs on honest policyholders.

In contrast, the other options relate to lawful and ethical behavior associated with insurance practices. Providing accurate information to insurers is essential for obtaining and maintaining coverage, complying with regulations ensures that all parties operate within the law, and lowering premium costs is typically achieved through legitimate means, such as safe driving records or bundling policies, rather than through deception.