State laws define auto insurance fraud as any form of deception against an auto insurance company that could result in financial gain. Insurance companies work hard to prove fraud and even harder to prosecute it in all 50 states. Drivers in Cincinnati, Ohio, should educate themselves on common types of auto insurance fraud to ensure that they don’t mistakenly or intentionally violate the law.
Vehicle dumping involves the owner of the vehicle burning it, pushing it into a lake or selling the vehicle and then reporting it as stolen. Essentially, any type of claim where the owner disposes of the vehicle and reports it as stolen is vehicle dumping.
Faulty airbag replacement
Faulty air bag replacement involves the help of a mechanic or an owner who knows how to rig the vehicle’s airbag system to malfunction. According to the National Insurance Crime Bureau, shady mechanics may affix a deployed airbag to a non-deployed steering wheel to make it look like the airbag deployed, resulting in a higher insurance claim. Some states have passed laws that make replacing an airbag with a faulty one punishable by significant fines and up to a year in prison.
The address where you keep your car parked for most of the year will have a direct impact on how much you pay for auto insurance. It is not uncommon for people who live in an area where auto insurance is expensive to lie about where they live in order to get lower rates. While this may seem like a harmless falsehood, lying to the insurance company in order to save money is the very definition of fraud.
If you file an insurance claim, your insurance company may try to accuse you of fraud in order to get out of paying. That is why it may be helpful to work with an attorney who is familiar with insurance defense.