Auto Insurance Fraud in California

In the last three years, there has been a massive 9% increase of cases relating to auto insurance fraud in California. These figures, released by the National Insurance Crime Bureau (NICB), make alarming reading for road users throughout the state.

Amongst the most concerning examples of auto insurance fraud in California is the number of faked vehicle thefts and non-existent accident injuries. The increase in the number of these questionable claims is rife throughout the industry, and the NICB dealt with cases from over 1,100 different insurance companies last year. As many as one in seven cases turned out to be fraudulent.

California sees more car thefts per capita each year than any other state in the US, and many of these thefts are illegal give-ups where the owner had a role to play in the disappearance of the vehicle. Faked injuries also dominate auto insurance fraud in California, and many road users manipulate the system to claim irregular or excessive payments.

The most common referral reasons behind auto insurance fraud in California were questionable vehicle theft, faked or exaggerated bodily injuries and fictitious damage in the aftermath of an accident.  While the problem continues to grow, it is the law-abiding Californian driver who suffers the most. The losses accrued by auto insurance fraud in California are ultimately passed on to honest consumers. Although it’s always going to be difficult to offset these additional costs, consumers can take comfort in the fact that cheap online auto insurance will always be available on Promiga’s dedicated website.