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Insurance Company Fraud Investigated

The Senate Insurance Committee is telling insurance companies to comply with a state investigation into cases of auto repair fraud.

The Bureau of Automotive Repair claims that a number of companies – including Allstate, Farmers Group and State Farm, have failed to provide documents for its investigation. Many of these companies are also involved in class action lawsuits accusing them of using shoddy auto parts in their repair shops.

State Farm says the Bureau of Automotive Repair doesn´t have the authority to request the documents and is challenging the Senate committee’s order to comply. The Bureau reported in August that forty-two percent of cars inspected in its anti-fraud program were the subject on some sort of fraud activity.