If you own or operate an auto dealership you know how rewarding it can be. You also know that the complexity of the business can open you up to the possibility of fraudulent claims. Not only can these be costly financially, but they can also damage your reputation.
Because we live in a litigious society, no dealership is immune to fraud. However, there are steps you can take to help minimize your risk.
Who better to help you keep an eye out for fraudulent claims than your staff? They are the ones that will be closest to the action and therefore the most likely to be the first to spot any wrongdoing.
With that said, it’s crucial that you ensure your entire staff is up to date on the most common types of dealership fraud. That includes different things people do and ways they act when they are about to make a false claim. Perhaps you enlist the help of your insurance company to lead a discussion on this topic.
This may seem like a no brainer, but it bears repeating. Document everything. That means the condition of the vehicles that are on your lot as well as the ones that come in for service. That means keeping tight records of each of your employees’ work hours, so you have clear documentation of how long a vehicle was worked on.
Not only does keeping comprehensive records provide evidence for your defense, but it also sends the message that you take safety and claims seriously.
There is perhaps no better way to help mitigate false claims than with surveillance cameras. Someone who sees cameras in your service department may be less likely to try to make a false claim against one of your employees or your business. If they decide to go through with it, you have video evidence to prove otherwise.
These are just a few tactics you can take to help deter fraud. If you want to learn more ways to minimize false claims at your dealership, download 7 Easy Steps to Prevent False Claims at Your Dealership.