Automobile Insurance Fraud Information
Automobile Fraud occurs when someone knowingly lies to obtain a benefit they are not otherwise entitled to receive. It can involve someone giving false and/or misleading information or documentation. Some types of common frauds include:
- Crash and Buy- Purchasing an insurance policy after a collision and lying about when an accident occurred to obtain coverage.
- Paper Collision - Parties conspire to create illusion of legitimate accident using either pre-damaged vehicles or by intentionally and covertly inflicting damage on the suspect's vehicle(s). Generally, law enforcement is not called to the scene of the accident.
- Organized Ring - Collision orchestrated by organized criminal activity involving attorneys, doctors, other medical professionals, office administrators and/or cappers.
- Faked Property Damages - Damages to vehicle exaggerated, non-existent, pre-existing or vehicle damaged at a later point in time.
- Inflated Damages - Damages inflated or exaggerated, non-existent or pre-existing; excessive billing of vehicle body parts or repair work.
- Premium Fraud- Failing to disclose all material information when obtaining an insurance policy.