Financially desperate residents and scam artists may be committing more automobile insurance fraud to cash in on insurance money, says California Department of Insurance (CDI) Commissioner Steve Poizner.
According to Poizner, data recently compiled by his department show that California saw an increase in suspected auto arson and auto theft fraud referrals last year.
The CDI receives and examines referrals of suspected fraud cases from insurance companies, local law enforcement agencies, and directly from consumers.
Poizner said that the CDI saw a 31-percent increase in suspected vehicle arson fraud cases in 2008, as compared with referred cases in 2007. (In 2007, CDI received 344 referrals for suspected automobile arson; in 2008, CDI received 451 referrals for suspected automobile arson.)
Overall, Poizner said that CDI received almost 300 additional suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007. CDI received approximately 200 more suspected vehicle theft fraud case referrals in 2008 than in 2007.
While the total number of suspected fraud case referrals received by CDI for all automobile fraud categories (including inflated damages, vandalism, and hit-and-run,) has remained relatively constant since 2007, suspected vehicle arson and theft referrals have noticeably increased. Poizner placed blame on a poor economy.
"Many Californians are facing a host of financial challenges in today's economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix," said Commissioner Poizner. "[CDI] investigators have seen an increase in suspected automobile arson and theft fraud cases recently, and our enforcement experts are working hard to crack down on anyone attempting to skirt the law for financial gain."
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