S.C. Attorney General Reports Millions in Auto Insurance Fraud in 2010

COLUMBIA, S.C., July 12, 2011 /PRNewswire/ -- Nearly $12 million in auto insurance fraud was reported in South Carolina last year, with bogus vehicle claims accounting for more than three-quarters of the total ill-gotten gains, according to the state attorney general's office.

OnlineAutoInsurance.com advises readers that those scams can cost them money.

Authorities say defrauding insurers means more than just ripping off a company—it also causes increased premiums for policyholders and makes it tougher for those seeking coverage to find cheap auto insurance quotes online or in person.

Coverage fraud costs the average U.S. household $1,030 a year in out-of-pocket costs, according to the attorney general's office.

According to the report, fraudulent vehicle claims made up 54 percent of total fraud cases but about 80 percent of the total amount attributed to insurance fraud in South Carolina last year.

The roughly $14.5 million in fraud reported across all categories of coverage more than doubled the dollar amount from the previous year, according to a report released Monday.

The South Carolina figures mirror reports nationwide.

The National Insurance Crime Bureau (NICB) last month reported a 23 percent increase from 2008 to 2010 in the number of "questionable claims" referred to it by member insurers for review and investigation of possible fraud.

South Carolina, where the NICB reported 1,452 questionable claims last year, ranked 17th nationwide for questionable claims, up from 18th in 2009 and 19th the previous year.

The majority of cases nationwide involved personal auto coverage, which generated more than 62,500 questionable claims last year. The next-highest policy category was homeowners personal property, which had nearly 11,700 such claims.

Some of the most common scams, according to the South Carolina attorney general's office:

--Making up or overstating an injury sustained in a car accident, or faking the accident

--Reporting an inaccurate medical history when applying for health coverage

--Exaggerating the number and value of items stolen from a business or residence

Source: http://www.scag.gov/insurance-fraud

The attorney general's insurance fraud division aggressively pursues suspected fraud, resulting in nearly 1,300 convictions since the division began in 1995.

To read more about this and other car coverage issues, go to http://www.onlineautoinsurance.com/, where you will find informative resource pages and a free-to-use quote-comparison generator.

SOURCE Online Auto Insurance, LLC