Verisk Insurance Solutions announced the launch of GarageConfirm, a new service to help insurers verify garaging addresses at point of sale and renewal. The service uses license plate recognition technology provided by Digital Recognition Network (DRN), previously available only to law enforcement and auto lenders.
Garaging fraud, also known as “phantom garaging,” generally occurs when consumers register and insure a car in one place but keep and primarily operate it in another (typically in a location where insurance rates are higher) as a tactic to lower premiums. An estimated $2 billion in auto premiums is lost annually to garaging misrepresentation, and recent Verisk studies indicate the problem may be even more serious.
GarageConfirm taps into DRN’s vehicle location database – the largest of its kind – which contains more than 4 billion license plate sightings. GarageConfirm then measures the time, frequency and proximity of vehicle sightings relative to a given address. Capturing geospatial data and grouping it into clusters of sightings, GarageConfirm tells insurers where a vehicle has recently been. Insurers can use the data to determine the validity of garaging addresses and commuting mileage, spot red flags that need further investigation, and recover lost premium.
Source: Verisk Insurance Solutions