Senate Moves Greenleaf Bill to Stop Airbag Fraud

HARRISBURG—The State Senate this week gave unanimous approval to a bill sponsored by Sen. Stewart J. Greenleaf to establish the crime of installing a fake airbag on a vehicle as a third degree misdemeanor.

Under Senate Bill 537, a person who is convicted of knowingly installing or reinstalling a fraudulent airbag would be subject to a penalty of up to a year in jail and a fine of $2,500.  At least 19 other states have enacted similar laws.

After an accident in which an airbag deployed, an unscrupulous repair shop could profit by installing a non-functional airbag or by stuffing other objects into an airbag compartment and charging for actual airbag replacement.  Fraudulent airbags might be installed as well in salvaged vehicles—those that have been declared "totaled" after a crash but have been rebuilt by body shops and sold at a discount to buyers who have no idea that the vehicle does not have a functioning airbag system.  One study conducted by a California organization indicated that one out of every 25 previously damaged vehicles checked had fraudulent airbags.

A recent television news report indicated that airbag systems –worth between $2,500 and $5,000--have replaced car radios as the number one item stolen from cars.  It is believed that the stolen airbags are sold on the salvage market.

According to the Coalition Against Insurance Fraud, consumers who suspect airbag fraud should not try to open the airbag compartment themselves, but should have a certified mechanic or reputable airbag technician perform the check.  The Coalition recommends that consumers thinking of purchasing a used vehicle should consider obtaining a history report on it from a commercial service such as Carfax to determine if airbag systems were replaced.  Signs that a replaced airbag might be fraudulent include a steering wheel compartment that feels soft when pressed or a passenger side compartment that is a different shade than the rest of the dashboard and does not have the manufacturer's logo imprinted on it.  Airbag indicator lights that don't light when the car is started or stay on while the car is driven might also be a sign, although a fraudulent installer may have tampered with the light system as well.

The Alliance of Automobile Manufacturers, a group of 13 automakers accounting for more than 90 percent of the motor vehicle sales in the United States, supports the Greenleaf legislation.