Combating and Recognizing Auto Insurance Fraud
Everything from dishonest auto body and repair shops, insureds who misrepresent a claim, to professional scam artists, cause your insurance premiums to skyrocket, making an average auto insurance policy almost too costly to afford. Since auto insurance is the law in most states and the cost of fraud is passed on to all insureds, everyone should be concerned with stopping this problem, dead in it’s tracks.
What’s considered auto insurance fraud anyways? Here are a few examples:
- Reporting parts of vehicles as damaged or lost when in fact they were not damaged or lost prior to the shop receiving the vehicle.
- Making final cost in excess of the original estimate of damage.
- Billing for repairs that were not authorized.
- Charging for genuine parts when after-market or used parts from junkyard were used.
- Pounding out dents when charging for brand new auto parts.
- Falsely making a stolen vehicle report to the police or vandalizing a vehicle in order to collect insurance money.
It is always very important for you to review carefully all paper work from your auto body or repair shops in order to protect against potential fraud. Also, you should be cautious of any auto body or repair facility that makes referrals to medical or legal offices. This practice may be an indicator of "capping." Capping, which is a felony offense in most states, is the illegal referral of clients to legal offices for a fee.
Do Your Part – Report Auto Insurance Fraud
If you’ve been the victim of auto insurance fraud, immediately contact the fraud division of your state insurance department. Remember, detailed and precise documentation is your greatest asset when filing claims and will enhance your chances of fighting back.
To learn more about auto insurance issues, contact the following
- Your Local Better Business Bureau
- Coalition Against Insurance Fraud
- Federal trade commission at 202.382.4357
- Insurance Information Institute at 800.331.9146
- National Association of Insurance Commissioners at 816.842.3600
- National Insurance Crime Bureau at 800.447.6282
For further information about reporting insurance fraud, check out the following links.
- Coalition Against Insurance Fraud
An organization dedicated to lowering your premiums by fighting insurance fraud.
- International Association of Insurance Fraud Agencies, Inc
Keeping you abreast of the various law enforcement agencies, government bodies, and insurance companies that are efficiently preventing insurance fraud.
- III - Insurance Fraud
Property/casualty insurance fraud cost insurers about $31 billion in 2002, find out how you can fight the problem.
- NCIB
The National Insurance Crime Bureau, lists America's most stolen vehicles.
- Insurance Fraud and Abuse
Help fight a very serious problem. Learn what is and what is not considered insurance fraud. Even you, can do your part to prevent higher premiums for U.S. drivers.
- Why Insurance Fraud Succeeds
Articles and interesting information regarding insurance fraud and what the insurance industry is doing as a preventative measure.
- Criminal Law Division
Read the Attorney General's latest report on Insurance Fraud, and how you to, can stop this epidemic.
