CAA: Calif. insurance fraud stings likely to continue

June 9, 2010—Insurance fraud stings at collision repair shops are likely to continue in the wake of last week’s arrest of 53 repairers in California, warns the California Autobody Association in their newsletter this week.

Such sting operations have been conducted in California since the early 2000s, according to the CAA. During the operations, an undercover investigator brings a vehicle into a shop, with recent collision damage and preexisting damage, and asks for an estimate to repair all damage to file on one insurance claim—which is insurance fraud because the preexisting damage would require a separate estimate.

The stings became enough of an issue that the CAA convened a committee, the Auto Body Fraud Task Force in to highlight the trend amongst California repairers. The task force aims to prevent fraud, and better educate repairers about what constitutes fraud.

“The CAA wants to make sure that every member is aware that these auto repair stings will continue,” the newsletter stated. “Make sure all your employees are aware of these ongoing stings and the procedures to ensure that they will not be in violation.”

More information about the task force, Collision Industry Guide and presentations are available on the CAA website at calautobody.com.