We all agree that numerous financial headlines are attracting attention nowadays, from inflation to rising gas prices and mortgage rates. Almost everyone is struggling to come up to terms with the significant economic events.
While insurance fraud may not garner attention the way other hot topics do, it is something that impacts almost every wallet. Insurance fraud happens regularly, from health care to auto insurance, and the impacts are far-reaching.
For the purpose of this blog post, we will take you through the common car repair insurance fraud types you should know. Read on to uncover more!
Exaggerated Repair Costs
Exaggerated repair costs is an insurance fraud mostly committed by dishonest repair shops. It can occur in numerous ways, such as repairing with used parts but billing the auto insurer for new parts, or merely billing the insurance agency for work that was never done.
Exaggerating repair costs can also be a way for the repair shop to ‘bury the deductible’ for the driver. That’s because the exaggerated repair costs will meet the cost of the deductible but overcharge the auto insurance provider.
Towing scams as a form of auto insurance fraud happens when your car breaks down and along comes a tow truck ready to ‘help’ you tow it. Most drivers think it is the tow truck company they contacted not knowing it is actually a scammer who took advantage of your vehicle breaking down.
Your car is towed away and you end up paying too much to have it back. This auto insurance scam is most common with crooked body shops. The scammer charges inflated rates for towing and the car is often towed to a crooked body shop for shoddy repairs. Towing fraud mostly happens in big cities, but could occurs anywhere in the country.
The Bottom Line
Never should you partake in car repair insurance fraud since it will come back to haunt you. Instead, take it upon yourself to find cheap car insurance quotes online, after which you can enjoy money-saving benefits on your policy.