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FACTS ABOUT VEHICLE PRE-INSURANCE INSPECTION
Inspection provides effective deterrents to a spectrum of
potentially costly frauds including: “Phantom” vehicle
frauds, Salvage schemes, Pre-existing damage claims, Duplicate
car & title frauds, “Paper” cars & counterfeit
title frauds, and more.
Physical inspection laws have proven to be one of the most effective
ways to deter fraudulent property-damage and theft claims.
The purpose of vehicle inspection is to document the existence
and condition of the vehicle, including accessories, to deter
The insurance pay-out for vehicle-related crimes, including real
theft and fraud, represents more than all other property crimes
More than half of the $15 billion in property-related crimes
committed each year are involve motor vehicles.
The first vehicle pre-insurance inspection program in the U.S.
was passed in New York, in 1977. Often called the Photo Inspection
Law, it required physical inspection of vehicles, plus photographic
Insurance companies ultimately pass the cost of fraudulent claims
along to policy-owners in the form of increased premium rates.
Reducing the number of vehicle-related fraudulent claims helps
stabilize insurance rates.
The large network of inspection facilities makes it easy for
policy-holders to locate a convenient location.