Where Minnesota Ranks Among States With the Most Auto Fraud

There were over 120,000 reported auto fraud and scam cases in the U.S. in 2020. Drivers who are unfortunate to do business with a dishonest mechanic or dealership can be tricked out of hundreds if not thousands of dollars.

Auto fraud comes in many different forms. Mechanics may overcharge or double charge for services, make unnecessary repairs, fake malfunctions, price gouge, or charge for unused parts. Car dealerships may lie about a buyer’s credit score, sell useless warranties or unnecessary products, and charge high interest rates. These practices are much more common in some states than others.

To determine the worst states for auto fraud, 24/7 Wall St. reviewed a list compiled by insurance marketplace Clearsurance, which based its list on data from the Federal Trade Commission. States were ranked based on the per capita number of auto-related fraud cases.

The rate of auto fraud varies widely from state to state. Most states reported between 140 and 250 cases per million residents in 2020. In three states, there were fewer than 100 cases per million, but in eight states, there were more than 300 cases of auto fraud per million residents.

In Minnesota, auto fraud complaints are less likely than in the typical state. Drivers in the state reported 138.1 incidents of auto fraud per million residents in 2020 — the eighth lowest rate among all states. The median among all states is 187.9 cases per million residents. In total, Minnesota residents reported 779 cases of auto fraud in 2020, the 25th lowest figure among states.

To determine the worst states for auto fraud, 24/7 Wall St. reviewed a list compiled by insurance marketplace Clearsurance, which based its list on data from the Federal Trade Commission. States were ranked based on the per capita number of auto-related fraud cases.