Premiums go up every year due to insurance fraud. Insurance fraud is a common problem nearly everywhere in the United States. Here are four ways on how to detect auto insurance fraud.

Parking Lot Story

Several people file false claims on damages done to the vehicle in a parking lot. The story is usually that the person hit their vehicle at the grocery store while they were inside and the person left the parking lot. They failed to file a police report because the person left the parking lot without sticking around. Several people use this story and actually get away with it in most cases. Elderly people love to use this same story so that they don't get their license taken away for poor driving. The file a claim on the damage which saves them a large amount of money by telling a simple lie.

Burned Up Vehicle

A person may have someone torch the vehicle in order to collect the insurance money. The person will often have someone that they know that is highly skilled in untraceable arson do it. People that are smart about automobile insurance fraud would have an experienced firefighter burn up the vehicle since they have enough knowledge. Firefighters know how to get away with certain arson crimes without being caught.

Vehicle Bought Back From Junk Yard

Once a vehicle has been determined totaled and sent to the junk yard then the person often buys it back from the junk yard. The person got the check and doesn't have a car payment anymore so he then goes to the junk yard to buy the car back at a much cheaper price. This is a common tactic that people use in order to get a car back at a cheaper price without having to pay the full amount.

Fake Accident Injury

People often fake an injury related to an accident. The false accident claims are the reason why people are required to get medical help immediately after the accident. They use to wait a few days then go into the hospital to complain of neck and back pain, but refused to seek medical attention right after the accident.