Insurance companies, brokers, and other insurance organizations want everyone to be aware of potential fraud from dishonest auto repair and towing facilities.
Keep in mind ** insurance money is your money**.
As an insurance buyer, you pay up to 15% EXTRA on your policy due to fraudulent claims. Seemingly honest people may overcharge or pad bills, believing insurance companies are faceless victims. However, insurance fraud affects us all.
Fraudulent schemes are becoming more creative, but some common scams include the following:
Exaggerated repairs are included in bills, even if no claim is made. Repair facilities might charge for items that weren’t broken when you arrived. They may dismantle working parts, install damaged ones for claims, then swap them back for the originals.
Repair bills might include charges for items that were not damaged or replaced.
Tow operators may inflate claims by overcharging for pickup, extra mileage, or taking you to the wrong repair shop. Beware if they recommend unknown repair facilities, which may overcharge or perform false repairs while giving kickbacks to the tow operator.
Safety airbag fraud involves replacing your good airbag with a defective black-market one. If your airbag deploys, it may be replaced with a cheaper, unsafe option while charging you or your insurer for a new retail airbag.
Tips to avoid this kind of fraud:
Ask friends and family to help you find a reputable repair facility. Ensure the facility has clean, modern equipment. Check for approvals from consumer organizations like BBB or BCAA or your insurance company. These approvals should be posted and up to date.
Consult your insurance company for certified repair shops. Insurance companies thoroughly vet facilities to identify those less likely to be dishonest. They also investigate consumer claims.
ICBC has C.A.R. (Certified Auto Repair) facilities, including elite VALET facilities. Visit www.ICBC.com to check for approved locations. ICBC pre-negotiates all rates to ensure fairness.
Always insist on a written warranty for any work done.
Report auto repair fraud. Don’t feel embarrassed if it happens to you. Repair shops and tow facilities should offer honest services. Report any suspicions to your insurance company, the police, and consumer services that approved the facility. Don’t settle for just having the facility “make good” on their mistakes—help protect others from falling victim to fraud.
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