JSMedia – A new investigation by an insurance company reveals a shocking amount of auto body shop fraud. Aviva Canada’s investigation into fraudulent claims found that more than half of the expenses submitted by shops were not legitimate. It also revealed that some shops intentionally crashed cars and overcharged insurance companies for repair work that was never completed. According to the company, this fraud costs insurance companies hundreds of millions of dollars a year.
The company, Aviva Canada, conducted a study to determine the extent of the problem. In its study, experts from the company simulated fender-bender scenarios and deliberately crashed ten passenger cars. They then posed as hapless drivers and equipped them with hidden cameras to document the costs of repairs. The results showed that nine out of 10 claims were fraudulent and that the actual costs of repairs were actually higher than the original estimates.
The report highlights a disturbing trend. Many auto body shops systematically overcharge their customers by deliberately damaging cars. Used parts are billed as new. Towing costs are inflated with fraudulent charges, and drivers are asked to sign blank work orders. These fraudulent expenses eat away at the bottom line of the insurance companies, so the insurers raise premiums to cover them. The result? High insurance premiums.
Insurance Company Uncovers Pervasive Auto Body Shop Fraud
The investigation reveals that auto body shops are guilty of a wide variety of scams. Some workers are even committing fraud by intentionally damaging vehicles, billing for services that were never performed, and creating invoices for repairs that were never performed. While Ontario roads are among the safest in the country, consumers should be wary of fraudulent repair services. If you’re looking for a reliable and inexpensive auto body shop, don’t risk it.
The insurance industry is unregulated, so collision repair fraud can be as complex as theft. The government doesn’t have the resources to stop every auto repair scam, but it’s not hard to make an effort to protect the consumer. It’s important to know where to find a reputable collision repair shop in the area you live. Regardless of where you live, Ontario roads are among the safest in the country.
Insurers are often unaware of these scams. While many people assume they’ve had a car accident, the insurance company may be paying for a faulty repair. Insurers need to share information about such claims to ensure that they’re getting the correct compensation. A thorough investigation could help uncover fraudulent repair shops by reducing the costs of insurance. The result is lower insurance premiums for all.