The article investigates the problem of the presence of fraudulent behaviors in the Italian automobile insurance market. First of all the phenomenon is described by statistical data about the Italian insurance market. Secondly, the insurance fraud problem is analyzed considering the asymmetric information theory, and adverse selection and moral hazard categories; the traditional remedies in the economic theory are then considered in the particular case of insurance fraud. Particularly as remedy, monitoring procedure by the insurance companies and institutional policy instruments are examined. Finally, taking into account the US experience, some conclusions are drawn specifically for the Italian case.