A recent viral video showing a driver slamming on the car brakes to purposely cause a rear-end collision is a prime example of auto insurance fraud, an escalating problem in Marin County.
The Marin County District Attorney’s Office is raising recognition during Insurance Fraud Awareness Week, which is November 17-23. Insurance fraud affects everyone, from employees unpaid while out because of injury to drivers who pay higher insurance premiums.
According to the National Insurance Crime Bureau, fraudulent auto crashes take place more frequently in urban areas where there is more traffic on the roads. Criminals tend to prey upon female drivers who are by themselves in cars.
There are lots of ways to report and help prevent several types of fraud.
Auto Insurance Fraud
This includes any of the following:
- Exaggerated damage claims;
- Reporting non-existent damage;
- Reporting pre-existing damage;
- Intentionally damaging your vehicle, and
- Engaging in false or excessive billing.
Although any single case might seem insignificant, insurance companies know when fraud has been committed. To cover the cost of fraud, they charge the consumer higher premiums across the board. Auto insurance rates will continue to climb if we do not put a stop to auto insurance fraud.
Criminal penalties: Auto insurance fraud includes not only directly committing fraud but also aiding, abetting, soliciting, or conspiring with anyone to commit insurance fraud. Fraudulent activity includes preparing any writing (such as estimates for repairs) with the intent to use it, or even allowing it to be used, to support a fraudulent claim. Such activity is a felony, carrying a maximum penalty of five years in state prison and a $50,000 fine.
Workers’ Compensation Fraud
All employers have a legal obligation to secure workers’ compensation insurance for their employees, even if they have just one temporary employee. If your employer does not have workers’ compensation insurance, you likely will have no income if you suffer a work-related injury. Failure for a business to obtain workers’ compensation insurance is a crime. The Workers’ Compensation system benefits both employers and employees for many reasons:
- Employers and employees avoid the normal court system, which can be extremely costly and time consuming;
- Work-related injuries and illnesses are processed regardless of fault in a systematic and standardized manner, thereby reducing the costs to employers; and
- Employers and employees promptly resolve work-related injuries through speedy resolution of claims.
Criminal penalties: It is a criminal offense for an employer to be uninsured, punishable by up to one year in county jail and a fine of $10,000 to $50,000.
Ways to report fraud
- Hotline: (800) 927-HELP (4357)
- California Department of Insurance
- California State Compensation Insurance Fund (SCIF)
- Marin County District Attorney’s Office: (415) 473-6450
[…] Story continues […]