Motor insurers are being warned about the latest scam in the Australian vehicle repair market.

An insurance lawyer says the trend of tampering with vehicle airbags poses grave threats to drivers and passengers and could also impact on insurance premiums and the price of new cars.

Hunt & Hunt Lawyers partner Brenton James says the issue only recently became noticed in the US and many people are surprised it has surfaced here so quickly.

The scam operates in two distinct ways. Dishonest repair shops claim that an accident has damaged or deployed a vehicle airbag. They remove the airbag, replacing it with a used version or low-quality item. Sometimes the airbag is not replaced at all.

The original bag can then be sold. “With prices starting at $1000, there is certainly a financial incentive to try the scam on.”

Another version of the scam sees the repair shop taking the airbag out – only to put it straight back in. It then charges the insurer for a brand-new unit. Mr James says authorities need to act quickly to stamp out both practices.

“Airbags are not a ‘one size fits all’ safety product,” he said. “If a make-specific airbag is not installed in your car, chances are it won’t work.”