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Auto insurance fraud cases up in California

Posted On Wed, October 28, 2009

Recently, the California Department of Insurance announced that some scams involving auto insurance were up in 2008.

According to the CDI, the number of suspected fraud cases involving arson was up by 25 percent in 2008 when compared to 2007. In all, 2008 saw 451 cases of suspected vehicle arson reported to the state's insurance department.

Furthermore, the number of referrals received by the insurance department for suspected fraudulent vehicle theft cases increased by 200 from 2007 to 2008.

"CDI investigators are seeing an increase in suspected automobile arson and theft fraud cases recently, and our enforcement experts are cracking down on anyone attempting to cheat the law for personal gain," California Insurance Commissioner Steve Poizner said.

Poizner said that given the state of the economy, many people may be tempted to try and make money though auto insurance fraud. However, he said that consumers will only make matters worse if they turn to illegal means to make ends meet.

According to the National Insurance Crime Bureau, fraudulent auto insurance claims can lead to higher costs for all consumers. The NICB encourages consumers to contact law enforcement agencies if they may have been the victim of insurance fraud.

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