What You Should Know About Los Angeles Auto Insurance Fraud
Los Angeles: The Auto Insurance Fraud Capital of the World
Los Angeles reported over $120 million of auto insurance fraud last year. Since 2011, more than 1,500 people were arrested for committing auto insurance fraud. Los Angeles is widely recognized as the global capital of auto insurance fraud because over 42% of all auto-related insurance fraud in California happens here.
Auto insurance fraud is covered under California Penal Code Sections 548 to 551. Although defining what constitutes auto insurance fraud in California can be quite complicated, most people agree that it happens when someone commits an act designed to defraud an auto insurance company to get money. Persons found guilty of this type of fraud can be sentenced to substantial jail time, significant fines, loss of employment, a lifetime criminal record, and more.
Various common auto insurance fraud scams occur frequently in Los Angeles. These include swoop and squat, which involves two or more vehicles boxing in a victim’s car, causing a sudden stop that leads to a rear-end collision. Staged collisions happen when someone deliberately stages a traffic accident to defraud an auto insurance company. Paper collisions involve filing reports of traffic accidents that never happened. Panic stops involve sudden, deliberate stops designed to cause rear-end collisions. Sideswipe happens when one purposely touches another vehicle’s side. Wave-out engages a suspect driver going onto the street from the public area, giving up their right of way to another motorist. The victim acknowledges the relinquishment of the right of way and proceeds, at which time the suspect deliberately creates a collision.
Also, fraudulent auto insurance claims occur if an individual submits false claims to their insurance company resulting from vehicle content loss or theft, destruction, or vandalism. Persons found guilty of this crime knowing that the claim was fake could face formal probation or up to five years in county jail. They may also have to pay a fine of over $49,000, double the amount of the fraud, or whichever is greater.
Insurance adjusters carefully investigate every injury claim where there is minimal property damage, and individuals claim “soft tissue damage” with symptoms that are difficult to confirm using diagnostic tests. People are hardly 100% accurate all the time; they may make statements erroneously or not understand some provisions of an insurance policy. Once somebody is accused of auto insurance fraud, they should make use of the available defenses. For instance, the prosecution has to prove that the accused intended to commit insurance fraud. Most cases of insurance fraud are dismissed due to lack of credible evidence. Direct evidence that a person intentionally damaged or abandoned their vehicle is often challenging to come by.
If you believe that you are wrongly accused of vehicle insurance fraud, please contact an attorney’s office right away. Learn how they can help you get out of your predicament.
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Auto Insurance Fraud in Los Angeles
Auto Insurance Fraud in Los Angeles |
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Los Angeles, the global capital of auto insurance fraud, reported over $120 million cases of insurance fraud in the previous year. |
Over 1,500 people have been arrested for fraud since 2011, and more than 42% of all auto-related insurance fraud occurs in Los Angeles. |
The Definition and Legal Issues of Auto Insurance Fraud
Legal Issues | Auto Insurance Fraud Scams | Fraudulent Auto Insurance Claims |
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The auto insurance fraud that occurs in Los Angeles falls under California Penal Code Sections 548 to 551. | This scam includes swoop and squat, staged collision, panic stop, sideswipe, and waved-out. | Individuals submitting claims knowing they are false for vehicle content loss or theft, destruction or vandalism commit this crime. |
A person performing any act to get money fraudulently from an auto insurance company is guilty of committing auto insurance fraud in California. | Paper collision involves filing a report for a traffic accident that did not happen. | Persons found guilty of this crime could pay a fine of over $49,000, double the fraud amount, or whichever is greater. |
A person found guilty of auto insurance fraud may be sentenced to jail, significant fines, loss of employment or a lifetime criminal record, among others. | | A person could undergo formal probation or be sentenced to jail for up to five years |
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Legal Defenses and Legal Help
Legal Defenses | |
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Some defenses include a lack of intent, errors, and lack of credible evidence. | If you need help with auto insurance fraud cases, contact a legal professional right away. |
Prosecution has to prove the accused’s intention to commit auto insurance fraud. | |
Many cases of insurance fraud are usually dismissed due to a lack of credible evidence. | |
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