Winter Storms May Tempt Drivers to Unkowingly Commit Auto Insurance Fraud
February 17, 2010
[HARRISBURG, PA] – With much of the state currently buried under snow, many drivers have had challenging commutes the past two weeks. And as they take their vehicles to repair shops to fix the latest dents and dings caused by Mother Nature, the Pennsylvania Insurance Fraud Prevention Authority (IFPA) is reminding everyone that auto insurance fraud is a felony in PA.
“As people begin to rid their cars of the dings caused by minor accidents on icy surfaces, some may be tempted to fix older scratches and dents and claim the damage happened at the same time,” says Ralph Burnham, executive director of the IFPA. “But when they do that, they are committing insurance fraud. And if caught, they could spend time in jail.”
Examples of auto insurance fraud include:
- An uninsured driver, whose auto insurance was cancelled after premiums went unpaid, slid on the ice and hit a guard rail, causing significant damage to their car but there were no witnesses. They immediately called an insurance company to get an automotive policy. Once the policy was in place, the driver filed a claim for damage to the car, saying the accident took place after the policy was purchased.
- When a driver insured their vehicle, to save money, they decided not to purchase collision or comprehensive coverage. Now, thanks to an icy driveway, their vehicle has a sizable dent in it from when they hit the mailbox. Facing a large repair bill they contacted their insurance company and purchased collision and comprehensive insurance. Then they reported the accident saying that it happened after the additional coverage was purchased.
According to Burnham, fraud is a lie told to steal. He says, “Many people think that their actions aren’t hurting anyone, but the reality is that it affects everyone.” Each year, auto insurance fraud adds $200 to the annual cost of each person’s insurance policy.
Additional information about this and other types of fraud can be found on IFPA’s website, www.helpstopFRAUD.org.
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Contact: ifpapr@helpstopfraud.org
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