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Staged-collision ring busted by California investigators

Posted On Fri, October 30, 2009

One of the reasons that auto insurance coverage can increase for everyone is fraud. Recently, the California Department of Insurance announced that an alleged fraud ring was broken up in the state.

In all, eight men have been arrested in the auto insurance fraud case, which involved staged automobile collisions. The alleged ring leader of the scheme, 31-year-old Chula Vista resident Jay Stoney Anderson, faces 28 counts related to the scheme. In all, the eight men face 83 counts of insurance fraud.

California Insurance Commissioner Steve Poizner noted that insurance fraud involving staged collisions endangers the lives of innocent people.

"Through the diligent work of our fraud detectives and a tireless effort by this department and our partners, we have broken up a crime ring that has caused more than $200,000 in damages," Poizner said. "This department will not rest when lives are placed at risk by these types of criminal enterprises."

According to the Insurance Information Institute, insurance fraud costs the industry about $30 billion a year. Those costs can lead to higher auto insurance rates for all drivers in the form bigger premiums.

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