Assessing the Effectiveness of Machine Learning Algorithms in Vehicle Insurance Fraud Prediction: A Comparative Approach
Aditya P. Satone, Subodh B. Daronde · 2025
Due to the wealth of information accessible on many insurance issues, including travel and auto insurance, individuals are becoming more and more impacted by these kinds of insurance in today's society. But this tendency also makes room for dishonest practices. Insurance fraud is harmful and unlawful, regardless of who commits it—the vendor or the customer. Fraud can come from both the customer and the vendor. The consumer may commit fraud by filing exaggerated claims or using out-of-date policies, while the vendor may market insurance from phoney firms or neglect to submit premiums. This paper presents a comparative analysis of various classification algorithms, including Support Vector Machine (SVM), Random Forest (RF), Decision Tree (DT), Linear Regression (LR), and Polynomial Regression, for detecting insurance fraud. The performance of these algorithms is evaluated using key metrics such as Precision, Recall, and F1-Score. The analysis reveals that the bestperforming model is the Random Forest, with a Mean Squared Error (MSE) of 6.50, outperforming the other techniques.