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AUTO INSURANCE "PAPER CAR" FRAUD
Up to 25% of every auto insurance premium you pay to your auto insurance company goes to cover auto insurance fraud! The "paper car" scam is a favorite for thieves. Here is how it works.
A crook will insure a late model car loaded with all the fancy, costly upgrades and gadgets but will insure it using forged documents. This way "on paper" it looks like
a costly late model car is being legitimately insured even though the car does not even exist. Then the thief will report the car stolen and collect the insurance money
on a car that never actually existed. It only existed on paper and since too many insurance companies may not thoroughly check out the cars they insure the fraud continues and goes unchecked in too many cases.
It seems like insurance companies may find it less costly to simply continue raising all auto insurance premiums on all insured car owners instead of working to close this loophole for fraud.
SUPPLEMENTAL SOURCE: FLORIDA AUTO THEFT INTELLIGENCE UNIT 7/7/06
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