One of the worst consequences of failing to be honest with your car insurance company is criminal penalties such as jail or fines. This is because dishonesty with your insurance company is a form of insurance fraud.

Is it fraud to lie about a car accident?

Keep in mind lying about an accident is a criminal offense. If the other driver deliberately distorts the story to avoid consequences, this person is committing a crime. Unfortunately, it is difficult to press charges for criminal conduct because it must be beyond a reasonable doubt.

What offense is insurance fraud?

A violation of Penal Code 550 PC insurance fraud is generally a felony, punishable by: two, three, or five years in a county jail following re-alignment, a fine of up to $50,000, or double the amount of fraud.

Is it illegal to fraudulently claim car insurance?

(Please note that Insurance.com reminds consumers that insurance fraud is illegal and a very bad idea.) Car insurance companies are becoming more vigilant about fraudulent claims, so don’t resort to fraud to save on your car insurance premiums — you could end up paying for it later.

What happens if you get caught in insurance fraud?

If you’re caught, penalties can range from denial of your claims, to cancellation of your car insurance policy, to possible fines or jail time. In other words, it’s not worth it. If you suspect a person or group is committing insurance fraud, you can report it to the police, your insurance company, or the National Insurance Crime Bureau.

What is a misdemeanor for auto insurance fraud?

Most car insurance fraud convictions are misdemeanors and for what is generally termed “soft” fraud. These usually mean some form of exaggeration on the claim, or a lie on the insurance application.

Why is car insurance fraud becoming more common?

Insurance fraud has become more frequent as people look for “creative” ways to make money. Car insurance companies find that people file more claims in a down economy, often for smaller amounts. With so many claims for car insurance companies to process, it may seem easy to get a fraudulent claim slipped through unnoticed. Not so.