Auto Insurance Fraud

Abstract

Insurance frauds are one of the renowned and prevalent white collar crimes in most countries. Among various kinds of insurance frauds, the most common and costly fraud is the automobile insurance fraud. Auto insurance frauds causes the insurance companies lose a large sum of money every year. It also has severe implications for the general public and other consumers. The aim of this paper is to cascade light on the notion of the automobile insurance fraud. The paper uses different literature and governmental sources to describe the context and implications of this category of the white collar crimes. The author describes the concept of insurance frauds in general and auto insurance fraud in particular. Subsequently the prevalence of auto insurance fraud is discussed by the use of statistics for the United States of America. The paper then provides an overview of the different severity of the auto insurance frauds on the basis of the kind of offense associated. Different circumstances and extent of the auto insurance frauds are then conversed. The author then provides the consequences and implications of the auto insurance frauds for different parties associated with the situation. In the end, the paper entails some recommendations as to the ways in which the auto insurance frauds can be combated.

Abstractii

Introduction1

Insurance fraud1

Auto Insurance Fraud2

Prevalence of Auto Insurance Fraud2

Hard and Soft Auto Insurance Frauds3

Soft Auto Insurance Fraud4

Hard Auto Insurance Fraud5

Circumstances and Extent of Different Auto Insurance Frauds5

Ditching6

Past Posting6

Vehicle Repair7

Vehicle Smuggling7

Phantom Vehicle8

Staged Accidents9

Inflated Damages9

Switch of Vehicle Identification Number (VIN)10

Rental Car Fraud10

Implications and Consequences of Auto Insurance Frauds11

Recommendations12

Conclusion14

References15

Auto Insurance Fraud

Introduction

White collar crimes are one of the most prevalent crimes especially in the United States of America. White collar crimes falls in a number of categories which are committed by white collar citizens in a sophisticated manner. The government has been actively involved in dealing with the white collar crimes. One of the most common of such white collar crimes causing severe damages to the companies and the government is the insurance fraud in general and auto insurance frauds in particular. The same is the centre of discussion of this paper.

Insurance fraud

Insurance fraud is a crime that is categorized under white collar crimes. Insurance crime reflects and denotes any act that is being done in order to falsely obtain the claim from the insurer. Insurance fraud is one of the major white collar crimes in the twenty first century and the prevalence is increasing. The implications of such crime is severe in term so its costs to others including the insurance companies and the general public. An insurance fraud can be categorized into different types. One kind of insurance fraud that is extensively viewed and reported is the automobile insurance fraud or simply auto insurance fraud.

Auto Insurance Fraud

As the name indicates, an auto insurance fraud or a car insurance fraud includes one or more kind of misrepresentation or false statement or indication in order to get the claim out of the car insurance in an inappropriate ...