Auto insurance fraud hurts us all

You may think you've never been a victim of fraud, but the fact is all of us are victims of auto insurance fraud because it leads to higher premiums. Sadly, when it comes to automobiles, wide varieties of fraudulent activities abound. Experts say to beware of dishonest car owners and auto body shops because they could cost everyone in the long haul.

New car insurance fraud scheme

While many types of auto fraud aren't life-threatening, an increasingly prevalent gambit is--the staging of accidents on the road and then lying about injuries. That can happen when a car in front of you suddenly--and for no reason--stops. The result is a usually a fender-bender, but it can be far worse. Another oft-practiced fraud that a disreputable auto body shop may talk you into is inflating the estimate of repairs to cover the deductible or declaring a lightly damaged car a total loss.

On average, insurance fraud adds between $200 and $400 a year to an individual premium, according to the Insurance Information Institute. If your car needs repair after an accident, ask your insurance agent for help. They can often recommend approved auto body shops.

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