Auto Insurance Fraud Costs Americans $20 to $30 Billion Annually

Auto insurance fraud is becoming a great problem in the United States. Auto insurance agencies are paying billions of dollars each year to cover them, that leads to increased premiums even for those who didn’t commit fraud.


Auto insurance fraud is committed against an insurance company in order to receive financial gain. According to the National Insurance Crime Prevention bureau auto insurance fraud costs Americans $20 to $30 billion annually.

insuranceAuto insurance fraud can be “hard” if it consists of an intentional set up of a situation such as car theft or an automobile accident. Soft insurance fraud is regarded as a minor offense, when a person takes advantage of a situation that has already occurred by pretending that the injuries were more serious that they actually were.

The following actions are fraudulent and may lead to serious penalties. It is illegal to:

  • register your car in the place different from where you live because of the lower insurance costs
  • exaggerate repair costs
  • exaggerate injuries from an accidentlies
  • get rid of the car
  • stage accidents
  • cause intentional damage to your car



Sometimes unintentionally people commit soft fraud. It is very important to remain honest and report damages or injuries to auto insurance companies the way they are. If you’ve been charged with auto insurance fraud, you should contact an experienced attorney who can provide you with all legal information and defend you aggressively.

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