Fraudulent auto insurance claims result in increased payouts by insurance companies, resulting in higher insurance cost for all insured. Auto insurance fraud can take many forms including; inflating damage or medical claims for an actual collision, claims for accidents that never occurred, staging collisions and submitting a claim, arson, and medical billing for unnecessary services or services not actually provided. In many instances auto insurance fraud is a felony punishable by up to five years confinement and a fine of up to $50,000 or double the amount of fraud, whichever is greater. Prohibited conduct and associated penalties can be found in California Penal Code section 550.
For more information about auto insurance fraud or to report suspected violations contact the California Department of Insurance at (800) 927-4357 or visit their website at http://www.insurance.ca.gov/. Hearing impaired persons may call TTY (800) 482-4833.