Auto Insurance Fraud

According to studies performed by the National Insurance Crime Bureau (NICB), 10% or more of property and casualty insurance claims are fraudulent and insurance fraud is second only to tax evasion as the most costly of white-collar crimes.

Insurance fraud can be perpetrated in a number of ways. One of the more established methods is vehicle theft fraud and there are a number of ways a deceitful auto body shop can cheat an insurance company with collision repair fraud and in particular the growing practice of airbag fraud.

Motorcycle riders may want read up on motorcycle theft and fraud and everyone will want understand what cloned vehicle fraud is all about.

For those who are looking for a well-priced previously owned vehicle, please take a look at how to avoid flooded vehicle fraud and if you're looking to enhance or soup-up or your current ride, you should have a look at how performance speed shop fraud is an increasingly familiar occurrence.

Auto insurance fraudsters can originate from many sources such as organized criminal operations, dishonest lawyers and doctors, or even your neighbors. As a result, various agencies and groups have combined forces to battle this growing problem.

Many insurers have created special investigative units comprised of trained experts who can look into suspicious claims as well as work in conjunction with law enforcement agencies and the NICB.

In addition, many states have enacted laws and statutes to combat and deter fraud. They also have special fraud bureaus and task forces to fight it firsthand.

Finally, the insurance industry has also put its full support behind the NICB, which has gone to great lengths in combating fraud through analysis, forecasting, support for criminal investigations, as well as training and public awareness.