One in ten car repairs fraudulent: report

Almost one in ten car damage repairs are fraudulent, with inflated bills often handed to car owner by unscrupulous repair shops, announced an insurance association yesterday. The group compiled research based on random checks of garages and found that the actual repair bills where fraud was committed should have cost an average of 18 percent less than what is shown on the actual bill. Auto shops often include parts in the receipt that they have not actually used, using tactics like hammering out dents instead of replacing sheet metal. "This research shows that fraud in the damage sector is more than a feeling in you gut,” writes the association. They deem this conclusion shocking and ask all car repair branches to take action. The random tests were performed in coordination with eight car insurance companies. Damage experts and fraud specialists checked 500 repaired vehicles. In most cases, the actual repair costs were 50 percent lower than what the consumer or insurance company actually pays. The association does not only believe that this is worrisome for the insurance companies, but also for the consumer. “Car owners are the victims of fraud in the case because the value of their car decreases, and they drive away with a car that has been repaired poorly," the statement said. "This could be a danger to traffic safety. Above all, indirect fraud can lead to higher insurance premiums.”