Auto insurance fraud cases increasing in California

Saturday, August 29, 2009

Financial desperation may be driving more Californians to ditch their cars or set them on fire to get an insurance payout, according to the California Department of Insurance... [there were] 300 more suspected fraud cases involving arson and theft in 2008 than in 2007.

Experts say those crimes typically increase during economic downturns... David Simon, a San Bernardino County, Calif., deputy district attorney with the organized auto insurance fraud unit, said he has also noticed an increase in "give-ups," where a person ditches a vehicle or sets it on fire to get out of car payments and get a check from an insurance company...

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