NU Online News Service, May 27, 10:30 a.m.EDT

There are probably no farms in Brooklyn, N.Y., and it isunlikely a Jaguar is being used to haul animal feed.

A new study reveals many vehicle owners claiming a discount forfarm use are giving insurers a load of horse manure.

Cars clearly not meant for farm duties and owned by peopleliving in urban areas are fraudulently getting farm-use discountsof up to 20 percent offered by many insurance companies, accordingto Quality Planning.

A subsidiary of Verisk Analytics that verifies policyholder datafor insurers, Quality Planning looked at about 80,000 vehiclesgetting a farm-use discount in 2010 and used geocoding to determineif owners lived in urban or rural areas, and if there was farmingin the vicinity.

What the San Francisco-based company found was that about 8percent of cars getting the discount where garaged in places notengaged in agriculture. Makes of cars receiving the savings—meantfor vehicles used exclusively on a farm—included BMW, Cadillac,Jaguar, Mercedes and Porsche.

“In some cases the type of vehicle employed…would seem ratherunsuitable for farming,” Quality Planning says.

The fraud is costing insurers about $150 million each year,concludes Robert U’Ren, senior vice president of QualityPlanning.

“Misapplication of the farm-use discount is one of a number offrauds perpetrated on insurance companies by dishonestpolicyholders and their agents,” says U’Ren in a statement.

Claiming farm-use is basically done on the honor system. The useis seldom verified, so it is an easy way to cheat an auto insurer,says Quality Planning.