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Auto Insurance Fraud & Car Theft

Car theft is the number one reason for false insurance claims and that auto insurance fraud is perpetrated, or attempted, almost every day. Although the term "grand theft auto" does not apply to vehicles such as bulldozers, boats, aircraft and spacecraft, there are still laws in place that will punish the criminal ready to commit such an act.  Stealing a car from an innocent victim is not the only way to commit a felony in terms of vehicles; having one's own car stolen to collect on auto insurance is an all-too-common offense in the United States.

30-Day Specials

A car owner commits this fraud by hiding the car and reporting it stolen. He keeps this sham up long enough to have the insurance company give him money from the claim, and thereafter "finds" it abandoned.

Export Fraud

A vehicle owner in this case would purchase a new vehicle and insurance coverage for it, and then ship it overseas to sell on the black market. He collects on the money paid for the car as well as the compensation from his insurance company for his "stolen" car.

Owner Give-Ups

In this instance of auto insurance fraud, a car owner has someone steal and destroy his car so that he may receive insurance money.

Phantom Vehicles

A person in this instance would purchase an insurance policy for a nonexistent- most often luxury- vehicle for which he creates a fake title, and reports it stolen to collect on the insurance money.

Many states within the US require vehicle licensing authorities on vehicle identification number for the purpose of slowing down crime, and this makes it considerably harder to resell a stolen vehicle.