Common Forms of Auto Insurance Fraud
Auto insurance fraud takes numerous forms, ranging from false claims to excessive charges by policyholders or repair service providers, all aiming for illicit financial gain. Although illegal across all states, we at Toney Insurance Services in Snellville, GA provide an overview of the most prevalent auto fraud types.
Inflating Repair Costs After a Collision
Certain unscrupulous repair shops and collision repair companies may deliberately inflate the cost of necessary vehicular fixes. Overcharging for parts or exaggerating repair times to increase the repair costs they submit to your insurance company constitutes fraud.
Vehicle Dumping
Vehicle owners keen to avoid repair-related issues may resort to various deceptive practices such as disposing of their car, declaring it stolen, selling it off, or even damaging it intentionally to submit a fraudulent claim to their insurer.
False Registration
Some owners may use an alternate address to secure lower premiums in regions with exorbitantly high insurance rates. However, unless they actually live at the stated location, using an alternate address constitutes fraud, inviting serious penalties.
Faulty Airbag Replacement and Windshield Repairs
Unfortunately, some mechanics opt for dishonest practices by claiming payment for replacing deployed airbags that they never actually replaced, thereby defrauding insurance companies. Similarly, some companies claiming to offer on-the-spot windshield repairs often provide temporary fixes and require subsequent servicing.
Reliable Auto Insurance Solutions
If you have any queries regarding insurance fraud or suspect you might be its victim, don’t hesitate to contact us at Toney Insurance Services in Snellville, GA.
