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Everyone knows car insurance fraud is bad news. But would you know how to spot it? We’ll reveal 5 common schemes to give you a better understanding of fraud in action.

Recap: insurance fraud 101

Car insurance fraud is any deception committed against an insurance company for financial gain. Fraud is illegal in all 50 states, and insurance companies (like ours) do all we can to investigate and expose fraudsters.

5 ways car insurance fraud can happen

1. Vehicle dumping, aka “owner give-up”

This type of car insurance fraud occurs when the owner disposes of the vehicle by leaving it somewhere, burning it, dumping it in a lake, or even selling it, and then claiming it was stolen.

2. False registration

Where you live affects what you pay for car insurance, and this car insurance scam is designed to mislead insurers and avoid higher premiums.

3. Exaggerated repair costs after a car accident

This one is committed by less-than-upstanding repair shops. Let’s say you bring your car to the shop after an accident, and the mechanics use shoddy parts to make the necessary repairs.

4. Faulty airbag replacement

This is another type of car repair scam. It happens when mechanics don’t replace the airbag after an accident. Instead, they stuff the compartment with other objects, such as beer cans (yup, you read that right) or packing peanuts to keep the sensors working.

5. Faulty windshield replacement

Windshield fraud can take unsuspecting drivers by surprise. Usually, someone claiming to be a windshield repair specialist will approach you in a parking lot, trying to convince you that your windshield is damaged and you need a new one ASAP.

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