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Auto Insurance Fraud Ring busted

October 25, 2005 by Jonathan Stein

It seems like I post about insurance fraud and then someone gets busted for fraud. This time the California Department of Insurance busted a ring. 

These people were making fraudulent claims to rental companies. Basically, they would rent a car, and then return it with damage claiming they struck an unoccupied vehicle. The “vehicle owner” would then submit an estimate for damage and get paid.

Interesting scheme. They got caught because they kept using the same vehicle to claim damage to. Not a very smart idea. But, this is another example of a fraud ring that got busted, but did not involve any members of the public which further supports my claim that you should not be losing sleep over insurance fraud.

Categories: Auto Insurance

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