California Auto Insurance Fraud Increases

The state of California has seen suspected California auto insurance theft and arson fraud increase over the past year according to The California Department of Auto Insurance which released information on Friday. This was found in the article “State Sees Rise In Suspicious Auto Insurance Claims” on Sacramento Biz Journal by Kelly Johnson.

The agency recently gathered data that showed criminals may be committing more auto insurance fraud to obtain insurance cash during these tough times. Insurance Commissioner Steve Poizner stated in a news release that fraud is on the rise. In 2008, the California Department of Insurance found a 25% increase in suspected car arson fraud cases from the year before. They also received about 200 more suspected car theft fraud cases in 2008 compared to 2007.

The department receives regular referrals of suspected fraud from auto insurance companies, law enforcement agencies as well as consumers and each case is researched to determine if it is actually a fraud situation. Other kinds of auto fraud such as inflated damages, vandalism, and hit and run accidents have remained somewhat constant since 2007 according to the Department.

This increase in suspected fraud may continue as the recession remains. Consumers are feeling strapped for cash and desperate and this seems like the only road for many. Of course, any type of fraud will end up costing you much more in the end, including possible jail time.

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