Insurance fraud can cost U.S. consumers as much as $308.6 billion each year, according to a 2022 study by the Coalition Against Insurance Fraud. Of that total, about $45 billion comes from property and casualty insurance fraud.

When it comes to auto insurers, a 2017 Verisk study reported these companies lose at least $29 billion a year to premium leakage caused by incorrect underwriting information leading to inaccurate rates. This leakage (some intentionally fraudulent) involves includes several different types of false information, including:

• Unrecognized drivers ($10.3 billion in leakage per year)
• Underestimated mileage ($5.4 billion in leakage per year)
• Violations/accidents ($3.4 billion in leakage per year)
• False garaging ($2.9 billion in leakage per year)

Some of this can be chocked up to innocent mistakes on the part of the customer, not everyone purchases an insurance policy or files a claim with good intentions. Insurers must be aware of the methods of intentional auto insurance fraud that scammers tend to favor in order to protect their interests. In the slideshow above, we'll break down five of the most common types of auto insurance fraud carriers should keep an eye out for, according to Allstate.

Related:

• Multi-agency task force breaks up luxury auto theft ring
• Most people say they don't commit fraud, but survey shows that's not quite the case
• 7 ways to prevent claims leakage