What Is Car Insurance Fraud?

 Posted on February 27, 2018 in Fraud

Car insurance is a necessity for all licensed drivers. This coverage can save a driver financially in the event of a car accident. Even though car insurance should be one of the biggest priorities of a driver, there have been far too many incidents where insurance fraud was committed. Insurance fraud is a very serious criminal offense that can lead to undesired consequences to the offender.

Types of Insurance Fraud

Car insurance fraud is defined as any form of deception against an insurance company to gain financially. Insurance fraud is illegal in Illinois, and there are at least five ways that insurance fraud can occur, such as vehicle dumping, false registration, exaggerated repair costs following a car accident, faulty airbag replacement, and faulty windshield replacement.

Vehicle dumping is when the offender tries to dispose of the vehicle by burning it, leaving it somewhere, dumping it in a lake, or selling a car and reporting it stolen.

There is a car insurance scam that misleads insured drivers to avoid higher premiums by falsely registering their cars in other states and countries where the premiums are lower. The car insurance premiums may be affected by where the insured driver lives, and insured drivers who become involved in this type of scam tend to live in more expensive areas with higher theft rates.

Body shops may commit exaggerated repair cost fraud by overcharging an insured driver for needed repairs. Body shops may also commit exaggerated repair cost fraud by repairing the car with cheaper and potentially unsafe parts and billing the insurance company for new parts that were never used before.

Another type of car repair scam, called faulty airbag replacement, can include mechanics stuffing the airbag compartment with items other than the actual airbag just to keep the sensors working.

Windshield fraud may consist of a “windshield repair specialist” approaching another person from anywhere and telling them that they need to replace their windshields as soon as possible. These “specialists” will claim to repair the windshield at no cost to the person, and the windshield that may have been in good shape may be replaced with a potentially unsafe counterpart. Anyone who falls for this type of scheme may lose his or her car insurance coverage, as the “specialist” may use the insurance information to submit false claims on the vehicle under the person’s name.

Call a Chicago Criminal Defense Attorney

Insurance fraud is very a serious crime, which could cost you your insurance license, future employment opportunities, and overall quality of life. If you or someone you know has been charged with insurance fraud, it is best to seek effective legal representation. At the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney, we understand your questions and concerns, and we are ready to assist you with your case. We have over 28 years of experience in representing Cook County area clients in criminal defense matters, so you will be guaranteed a seasoned experience. For a free initial consultation, please call a Chicago criminal defense lawyer at 312-629-0669 today.

Source:

https://www.esurance.com/info/car/5-examples-of-car-insurance-fraud