Car insurance fraud: The role of vehicle repair workshops

What is it about?

This article explores the role of vehicle repair workshops in car insurance fraud and how they might contribute to the reduction or increment of this type of crime, which has been an overlooked research area. The data collection method used was on-site semi-structured interviews through a convenience sample of twenty vehicle repair workshops in Oporto (Portugal). The results revealed that vehicle repair workshops facilitate insurance fraud mainly by cooperating with the vehicles owners and by not reporting their fraudulent attempts and practices to the authorities nor to the insurance company. As one of the actors involved in the dynamics of insurance fraud, vehicle repair workshops have the potential to prevent those crimes.

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Photo by Arseny Togulev on Unsplash

Photo by Arseny Togulev on Unsplash

Why is it important?

• This article explores the role of vehicle repair workshops in car insurance fraud and how they might contribute to the reduction or increment of this type of crime, which has been an overlooked research area. • Data showed that vehicle repair workshops can facilitate insurance fraud when faced with the opportunity to do so. • Cost-benefit analysis and the perception of these fraudulent activities as not being a crime become the main factors for such a decision. • Insurance fraud is committed to respond to the needs of the client (vehicle owner) and/or for financial gain. • This type of crime requires a multi-dimensional action towards all actors involved in order to prevent the phenomenon of car insurance fraud.