How to use vehicle location data to pinpoint garaging fraud.
So the address on insured’s policy is in one state but they actually live in another state that has higher rates. No big deal right? In fact, many would argue that garaging fraud is a “victimless crime.” But, carriers know nothing could be further from the truth. Garaging fraud drives up premiums for everybody because carriers have to cover for the expected fraud in their rating tables. And that means costs go up across the board – we all pay.
And, a case of garaging fraud could even predict the chance of more fraud down the road. Why? It goes back to the old adage: Liars Lie. Think about those “snow birds” who don’t think twice about the fact that they spend 6 months out of the year in sunny Florida where the premiums are different from their home state. If they view this as victimless fraud and are willing to lie about garaging, what other “white lies” are they willing to tell when it comes to filing claims?
The insurance industry estimates that garaging fraud costs more than $2 billion in premium leakage, and DRN’s estimates show that number to be even higher because the industry has a hard time identifying this elusive type of fraud. Now carriers are fighting back using Event Links powered by DRN’s exclusive vehicle location data and analytics, leveraging the power of over 4 billion nationwide vehicle sightings, plus 100 million more gathered each month.
Two Ways SIU’s Can Use Event Links to Research Garaging Fraud
- Search by License Plate: Enter the license plate number for the insured, and you get a quick report showing you the vehicle sightings for that plate grouped by location. The more sightings in one location versus the insured’s reported address could provide valuable evidence of garaging fraud indicating that this person does not live where they say they live.
- Search by Address: Enter the address for the insured and you get a report that shows the vehicles that have been sighted at that location – tipping you off to potential fraud
The vehicle location data that DRN provides: this is data you can’t get anywhere else. Carriers that use DRN’s Event Links for SIU investigations are calling it a game changer that goes beyond existing investigative tools to deliver tips and leads for their investigations. Use Event Links to pinpoint garaging fraud today and you might just prevent even more fraud and loss down the road.
If you are a ISO ClaimSearch Decision Net or TLOxp user you can start using Event Links today!