Pre-Insurance Inspection Background
Pre-Insurance Inspection Report Log-In
In response to a public outcry over skyrocketing costs of automobile insurance, the New York State legislature passed a law during the Summer of 1977, which was commonly referred to as the "NYS Photo Inspection Law." This anti-fraud statute was designed to help reduce auto insurance costs by preventing issuing policies for non-existent (phantom) automobiles and deterring fraudulent and exaggerated automobile damage claims. The law required that all vehicles with physical damage insurance coverage (fire, theft, collision or comprehensive) be inspected by a representative of the insurance carrier at the inception of coverage. The inspection includes a verification of the Vehicle Identification Number, list of options and accessories, description of any damage on the vehicle, photographs of the EPA sticker, and the vehicle itself.
Insurance fraud costs the motoring public millions of dollars each year. To learn more about how vehicle pre-insurance inspection combats insurance fraud, read Photo Inspection: First line, of defense against vehicle insurance fraud.
In the fall of 1977, CARCO Group, Inc., a privately held corporation, was founded to provide auto inspection service to the insurance community. An initial network of more than 1,000 auto photo inspection stations was set up throughout the State of New York to serve the convenience of the motoring public.
The success of this law in reducing the number of fraudulent claims in New York influenced the Commonwealth of Massachusetts and the State of New Jersey to implement similar inspection programs respectively. CARCO quickly responded to this new marketing opportunity and established comprehensive physical damage automobile inspection site networks and programs to virtually mirror that of New York.
The State of Florida was next to implement a limited version of the vehicle inspection program. CARCO immediately expanded its service to meet the automobile inspection needs of the insurance carriers in Florida by providing the most cost-efficient and expansive inspection service available in the state, including an extensive inspection site network and state-of-the art computer communications.
In March of 1994, two significant events occurred related to pre-insurance vehicle inspection. First, the State of Rhode Island implemented a Vehicle Pre-Insurance Inspection Program. As it had done in the past, CARCO responded to this new market by opening an extensive inspection site network. CARCO also acquired Autocheck, a major competitor in this market and, as a result of the merger of Autocheck's inspection site network with that of CARCO's, an industry-leading national site network in excess of 4,000 locations was created.
On July 20, 1995, CARCO continued it's strategy of rapid growth through acquisition by acquiring the operating assets of the insurance inspection services division of AutoInfo, Inc., it's largest competitor. This acquisition enabled the company to operate more efficiently and to provide enhanced service to the insurance community, including a combined national site network of approximately 7,000 locations.
Today, through it's record of quality performance, a fully computerized proactive vehicle inspection program, and the most extensive site network available to serve the motoring public, CARCO maintains a dominant market position in the automobile inspections industry segment.
CARCO, setting the standard for accurate and reliable screening for 35+ years.