Auto insurance fraud occurs when individuals intentionally deceive insurance companies to receive benefits or payouts they are not entitled to. This can include staging accidents, inflating repair costs, or submitting false claims for injuries. Such actions not only harm insurance companies but also lead to higher premiums for honest policyholders. The consequences of auto insurance fraud can be severe, including criminal charges, fines, and even imprisonment. Insurance companies actively investigate suspicious claims to protect their interests and maintain fair pricing for all customers. Reporting fraudulent activities helps ensure that the insurance system remains fair and sustainable.