Auto Insurance Fraud on the Rise
State officials across the nation are reporting a spike in auto insurance fraud, according to a report from Kiplinger.com. The trend seems to be just another sign of economic hard times.
State officials across the nation are reporting a spike in auto insurance fraud, according to a report from Kiplinger.com. The trend seems to be just another sign of economic hard times.
In Indiana, Michigan and New York, burned car claims have jumped 13 to 18 percent in the past year, State Farm said.
Scores of cars reported stolen are turning up abandoned in Lake Erie and in Western deserts. Crime rings are burning cars for hire in California, Kiplinger reported. A New Jersey principal recently pleaded guilty to charges that he torched a leased car that had racked up $9,000 in excess mileage fees.
"Increasingly, people are turning to insurance fraud as a quick bailout for their financial misery, to get out of auto leases they no longer can afford, and to pay off credit card or mortgage debt," James Quiggle, a spokesman for the Coalition Against Auto Fraud, told Kiplinger.com.
The state of New York has committed more resources to curbing the trend. Through October, New York had won 110 court decisions requiring motorists to give up insurance money and ownership of vehicles determined to have been intentionally burned, stolen or sent to chop shops for disposal, Kiplinger reported. That's 50 percent more than the previous year.
A Nevada task force is using helicopter patrols to help spot suspicious vehicles taken out to the desert to be destroyed.
More Safety

NAFA Fleet Safety Symposium to Collocate With 2026 Fleet Forward Conference
The daylong certificate program will precede the Fleet Forward Conference at the Gaylord National Harbor in Maryland.
Read More →
The Distractions You Can’t Turn Off: What Drivers Face Outside the Vehicle
Fleet drivers face constant visual, cognitive, and environmental interruptions the moment they hit the road. From roadside chaos to mental fatigue and digital overload, today’s biggest driving risks often come from outside the vehicle itself.
Read More →
FLASH Weather AI Launches First Deep-Learning Hail Prediction Model With High-Resolution Forecasting
FLASH Weather AI has launched a first-of-its-kind hail prediction model capable of forecasting hail size and arrival time at 1-kilometer resolution up to 55 minutes ahead, giving fleets and insurers critical time to prepare for severe storms.
Read More →
How Coca-Cola United Protects Its Fleet from Growing Legal Risk
As litigation risk rises, vehicles are increasingly targeted. This Coca-Cola bottler shares how it’s reducing exposure through driver training, technology, and a proactive risk management approach.
Read More →
How to Speak the Same Language on Fleet Safety
Drivers, supervisors, and data often speak different safety “languages.” Getting on the same page will drive better results.
Read More →
Fleet Cybersecurity 101: What You Need from Your Technology Vendors
From identity management to third-party certifications, the right technology partner should make security easier to manage. Here are the three building blocks that fleet managers need to stay in control as connected systems scale.
Read More →
Reducing Risk by Eliminating Phone Use Behind the Wheel
Distracted driving remains one of the most persistent risks in fleet operations. New approaches focus on removing mobile device use entirely while adding real-time safety support.
Read More →
Distracted Driving in the Age of Smart Tech – Part 2
As distraction risks evolve, fleets are turning to smarter, more connected technologies to better understand what’s happening behind the wheel. Part 2 explores how these tools are helping identify risky behaviors and improve visibility across operations.
Read More →
Data Rights, Risks, and Responsibilities After a Crash
What fleets capture to improve safety can also expose them in litigation, forcing leaders to rethink how data is managed, stored, and shared.
Read More →
From Distraction to Detection: Strengthening Awareness in Fleet Drivers
Distracted driving is often measured by what we can see—phones in hand, eyes off the road. But what about the distractions we can’t? A recent incident raises a bigger question about awareness, attention, and why subtle risks so often go unnoticed.
Read More →