Performance Speed Shop Fraud

As the import-racing trend has grown over recent years, so have the number of insurance scams. In fact, 80% of individuals involved in import racing admit to scamming the insurance industry to fund their vehicles.

One type of scam involves a dishonest performance shop giving the insured driver receipts for parts they never purchased. The driver then makes a claim saying they were stolen and the driver pays for the parts with the claim money. Some unscrupulous shop owners will even give or sell blank receipts at street races.

Sometime shops will install stolen parts. By doing so, they can save a great deal of money and even more if they steal the parts themselves.

You may think performance speed shop fraud affects only a small niche of people but remember those who defraud their insurance company are stealing and this has an impact on an insurer's other clients. This inevitably contributes to higher premiums as a company responds to preserve their bottom line.