What Car Title Fraud Is And How You Can Avoid It

Even though it is nice to believe that most people are good and true in their actions that is often not the case and car title fraud is a shining example of this. When a car title deliberately misrepresents the title history of a vehicle for any number of reasons then car title fraud has occurred. The main reason car title fraud exists is because states lack conformity on what constitutes a “salvaged car.” Make sure you are protected by comparing up to five car insurance quotes online.

When a vehicle is severely damaged by a natural disaster, involved in a serious collision, or stripped as a result of theft the insurance company can take possession of the car after reimbursing the insured driver and repair it. The vehicle is then given a new title that includes the type of damage the vehicle sustained and the vehicle is then often sold at an insurance auction.

Car title fraud happens when the vehicle is purchased at an insurance auction and the following occurs:

• The vehicle is purchased at a very low price because of the car’s damaged history.
• The purchaser re-registers the car in a state that does not recognize the branded title as salvaged. This is referred to as “title washing.”
• The purchaser of the damaged car which now has a clean title then sells the damaged car for a profit to an unsuspecting person and makes a profit.
• The unfortunate result is a car that is more prone to problems and being a danger on the road because of its damaged past and the new driver could be out of a lot of money when the car breaks down shortly after purchase.

So how can you avoid car title fraud?

• There has been a push for the federal government to step in and mandate what is considered a salvaged car so there isn’t a discrepancy between states.
• However, until then you can perform a car title history check by running the vehicle identification number (VIN) of a car made after 1981.
• There are numerous Web sites that provide car title history checks and in turn assist in preventing car title fraud.

Don’t Let Car Title Fraud Happen To You

It is unfortunate that so many deceitful people make car title fraud an every day occurrence. Not only is it financially damaging to the unsuspecting victim who purchases the salvaged car but it is also dangerous to other drivers because the susceptibility that damaged car has to breakdown on the road. If you are in the process of purchasing a used car then take the time in performing a vehicle title history check so you are not one of the victims of car title fraud. Protect yourself and save money by comparing car insurance quotes online through our free qutoe service.