The financial desperation may be the reason driving Californian’s to set their car on fire with an insurance payout. The state agency which is led by Insurance Commissioner recorded 300 fraud cases involving theft and arson in 2008.
The experts say that this crime would typically increase during economic conditions. The deputy director who is associated with auto insurance fraud said that they noticed an increase in give-ups where a person would set a vehicle on fire for car payments and get a check from the insurance company.
There are various first time offenders who don’t have criminal record, making them believe that they were in dire straits financially. There are around 580 suspected cases of auto insurance fraud which would involve arson and theft cases with an increase of about 12.4 percent of total suspected cases statewide.
The agency also estimates that every state resident would end up paying $500 more for higher taxes to cover the costs which would go along for investigating insurance fraud cases. Such individuals who are at risk of insurance fraud need to face three to five years of time in prison and get fined up to $50,000 or get doubled the amount of fraud.
As it is the cost of insurance fraud are very high which would make one victimless crime, leading to pay out for the same.
Such frauds would definitely increase up as per the survey and there is no doubt into it but as per the companies raise or modify rates they would need to seek approval from Insurance Department.
There are various first time offenders who don’t have criminal record, making them believe that they were in dire straits financially. There are around 580 suspected cases of auto insurance fraud which would involve arson and theft cases with an increase of about 12.4 percent of total suspected cases statewide.
The agency also estimates that every state resident would end up paying $500 more for higher taxes to cover the costs which would go along for investigating insurance fraud cases. Such individuals who are at risk of insurance fraud need to face three to five years of time in prison and get fined up to $50,000 or get doubled the amount of fraud.
As it is the cost of insurance fraud are very high which would make one victimless crime, leading to pay out for the same.
Such frauds would definitely increase up as per the survey and there is no doubt into it but as per the companies raise or modify rates they would need to seek approval from Insurance Department.
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