Auto body fraud: stop the bleeding.

Claims, April, 2005 by Zion, Kenneth

For over twenty years, I have been inspecting and analyzing vehicles for repair-related issues. Through these inspections, I have observed countless examples of auto body fraud and waste. Much of this fraud is perpetrated against insurance companies, who foot the bill for most repairs at body shops. The traditional model of one entity fixing the car (the repair shop) and another entity paying for the repair (the insurance carrier) has contributed to the problems in detection and punishment of fraudulent and wasteful activity.

Unfortunately, detection and punishment of fraud and waste is often difficult, expensive, and largely ineffective.

Types and Cost of Repair Fraud

How is auto body repair fraud committed? My investigations of 1,000...