During these tough economic times, people are going to desperate measures to get money. The newest way people are making money, is torching their cars or reporting them stolen and then collecting the insurance money. Suspected vehicle arson fraud went up 31% from 2007 to 2008. Suspected vehicle theft fraud went up 15% from 2007 to 2008. Already in 2009, there are more questionable vehicle thefts and arsons, as well as more suspicious “hit while parked” reports and phantom accidents than in 2008.
An obvious sign of fraud is when inconsistent stories are told to the insurance company. Often, people in Southern California drive their cars down to Mexico and leave them there, and then report the cars stolen. Now, insurance companies are investigating claims more thoroughly. If you are caught lying to the insurance companies, you will be charged with insurance fraud. Once charged, you must pay back what you owe the insurance company and you may even go to jail. For more information on fraud investigation, click here.