Three Arrested in Tampa for Auto Insurance Quotes Fraud

By: Shannon Brown, Car Insurance Analyst
CheaperCarInsurance.com

Since Tampa ranks #2 in auto insurance fraud, it should come as no surprise that three people were recently arrested for staging an accident with the intent to collect the car insurance money. It’s because of people like this that auto insurance quotes nationwide are higher than they should be. Insurance companies spread the risk of insurance fraud across all policyholders, so your auto insurance quote is more than it would be if people were more honest.

The trio involved in the fraud planned to file a claim with a pain management clinic. No word on whether the clinic was involved in the scam, but often medical facilities are, and receive a cut of the funds claimed in the fake accident.

According to Amy Moore of Allstate Insurance, the average driver pays $200 to $300 a year more than he should due to the cost of car insurance fraud. Until law enforcement officers and car insurance companies find a way to truly crack down on auto insurance fraud, policyholders will continue to pay for others’ mistakes.

What Are Lawmakers Doing?

While insurance fraud is high these days, be rest assured that lawmakers are working to crack down on it. Laws are currently under consideration to give state fraud investigators the ability to pull over anyone they suspect of insurance fraud, and they are taking strides to ensure that personal injury clinics are licensed with the state to cut down on the amount of fraudulent operations that get involved with scams like the one in Tampa.

Other Cases

Tampa certainly isn’t the only city with car insurance fraud going on. In L.A., two siblings were arrested on fraud suspicion after they claimed that their car was damaged in a car accident. Authorities happened to find a YouTube video that showed the vehicle had actually been damaged in a street race. Both Jay Xi Chen and his sister Tracy Chen Chen were charged with the felony of auto insurance fraud.

Insurance fraud isn’t limited to faked car accidents. A man in Wilkes-Barre, Pennsylvania was arrested on suspicion of fraud after he claimed his car was stolen around Christmas. Turns out he was actually involved in a car wreck and fled the scene, then claimed that someone stole his car (and allegedly got into that same accident).

If You Witness Car Insurance Fraud

If you are witness to an accident that is a little fishy, or you know someone who is trying to get some insurance money, don’t stand idly by. If you do, you, along with millions of other Americans, will pay more for your auto insurance quote in the future. Stand up and don’t tolerate insurance fraud.

Many cities and states offer rewards for tips on insurance fraud scammers. Tampa, for example, offers a $25,000 reward for information leading to the arrest of criminals committing insurance fraud. There are several authorities you can contact with information on fraud, including:

• Your state’s insurance fraud division
• The insurance company associated with the fraud
• National Insurance Crime Bureau (NICB)
• Coalition Against Insurance Fraud (CAIF)
• National Association of Insurance Commissioners (NAIC)

If you suspect someone of fraud, even if you aren’t sure, report it immediately.

Posted: March 16, 2010