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Fraudsters Claim Luxury Cars As Farm Equipment To Escape High Insurance Bill

 
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It turns out a Porsche 911 Carrera, Mercedes-Benz SL-Class and BMW Z4 have all been classified as farm equipment by shady owners throughout the country in an effort to receive a discount from their insurers.

Auto insurers typically provide a 20 percent discount on premiums for vehicles used strictly on farms due to their lower propensity to being involved in a collision, theft or other mishap that can occur to vehicles used in city areas.

The fraud was revealed by San Francisco-based Quality Planning, a firm that assists insurance companies in the verification of policyholder data.

After examining the policies of more than 80,000 customers that have claimed the farm-use insurance discount for their vehicles, researchers discovered that roughly 8 percent, or 6,382 vehicles, were housed in areas where less than 1 percent of the population was involved in farming.

For example, an Audi A4 housed in Brooklyn, N.Y. was classified as a farm vehicle and provided the owner with a $389 annual insurance savings.

In total, insurance companies were losing close to $150 million in fraudulently discounted premiums.

So far none of the fraudsters have been punished, with most of them simply receiving an updated insurance bill.

[Los Angeles Times]

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Comments (2)
  1. I can't help but think this is some kind of karma for the insurance companies ripping us off for years and getting filthy rich off of us.
    Surely they will get their money though.
     
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    Bad stuff?

  2. @Saabaru5 : agree! and if none of the ""roughly 8 percent, or 6,382 vehicles"" had any claims made to the insurance companies, then the insurance companies still many 'money'. imo - owners using their brains to lower their being ripped off by insurance companies.
     
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    Bad stuff?

 

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