Friday, October 21, 2011

The Auto Insurance Scam

Automobile Insurance fraud in California Insurance has existed ever since the beginning of insurance as a commercial enterprise. Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Types of insurance fraud are very diverse, and occur in all areas of insurance. The Automobile Property fraud involves dishonest auto body and repair shops and/or insureds who may employ a variety of illegal or questionable techniques including: Reporting parts of vehicles as damaged or lost when in fact they were not damaged or lost prior to the shop receiving the vehicle, billing for repairs that were not authorized, making final cost in excess of the original estimate of damage, charging for genuine parts when after-market or used parts from junkyard were used, pounding out dents or using bondo when charging for brand new auto parts, falsely reporting stolen vehicles or vandalism of vehicles in order to collect insurance monies.

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