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Letter to the Editor

Farmers Insurance Warns Vehicle Owners of Air Bag Fraud

Air bag fraud -- replacing a deployed airbag with a bogus or defective one -- now occurs in one out of every 25 previously damaged vehicles, at least according to the California Highway Alliance, and is virtually undetectable. (Editor's Note: The Collision Repair Industry certainly will want to see the statistics and study methodology for this statement.) Unlike factory-installed airbags, false and remanufactured airbags will not provide protection in the event of a collision.

"Air bag scams are a form of insurance fraud, and they put people's lives at risk," said Jeff Beyer, senior vice-president & chief communications officer for Farmers Insurance Group of Companies. "Not having working airbags to protect front-seat drivers and passengers is extremely dangerous."

According to the National Highway Traffic Safety Administration (NHTSA), about 20,000 front-seat, passenger-car occupants are killed each year in crashes on U.S. roads. Since 1999, all new passenger cars and light trucks in the U.S. have been required to have dual front airbags. It is estimated that air bags have reduced head-on crash fatalities by up to 30 percent, and moderate-to-severe injuries by 25 to 29 percent.

After a car crashes and an airbag deploys, the airbag compartment needs to be reset with a new airbag installed at a cost of $2,500 to $3,000 apiece. Some mechanics accept the insurance money, but refill the airbag compartment with a cheap, inferior alternative or filled with garbage -- such as packing peanuts, rags, towels, old shoes and cans.

Furthermore, airbag system covers can be purchased without airbags and can make a vehicle appear cosmetically the same whether or not an airbag is included beneath it. Airbag warning lights can even be reconnected and simulate airbag systems when one is not present.

"Most repair shops are honest, but the fact is air bag fraud is on the rise," Beyer said. "By raising awareness, we hope vehicle owners can help curtail this crime."

Insurance industry statistics show that approximately 50,000 airbags are stolen each year, resulting in an annual loss of more than $50 million to vehicle owners and their insurers.

Farmers recommends vehicle owners look for the following when purchasing a used car or having their air bag replaced:

• When seeking an automobile collision repair facility, check with the Better Business Bureau to make sure the shop doesn't have a history of consumer complaints.
• Check the invoice to make sure the shop bought the airbag from a car manufacturer, a dealer or a recycler. If possible, request to inspect the airbag prior to installation -- it should be packaged in a sealed container from the provider.
• The cover over the steering column should be identical in color to the rest of the interior trim. Also, be suspicious if the cover does not have the vehicle's logo imprinted on it. Before purchasing a used vehicle, get a vehicle history report. It will show if the vehicle was in a major crash or flood.
• Seek a reputable airbag technician to check bag your airbag, or go to www.aseblueseal.org to find a list of Automotive Service Excellence (ASE)-certified repair shops.
• Do not try to open the airbag compartment yourself. You could damage an expensive airbag system, or worse, you could be injured.

Headquartered in Los Angeles and doing business in 41 states, Farmers Insurance Group of Companies is the nation's third-largest Personal Lines Property & Casualty insurance group.

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