What Are The Penalties For an Auto Insurance Fraud

Exaggerating or faking injuries from an accident, planning a collision or staging car theft are all examples of car insurance fraud. Any act meant to obtain undeserved money from an auto insurance company will be classified as fraud. False insurance claims are a severe problem that costs insurance companies ten billions of dollars every year. Since auto insurance fraud is a big issue, the penalties for being charged with fraud are severe. If you have been convicted of this crime, go ahead and look for an Irvine Agent Near Me to know more about the penalties and fines for this crime imposed by the court.

The following points will explain more about the elements involved in auto insurance fraud offenses

Soft insurance fraud: Soft auto insurance fraud is a minor offense. Soft fraud means being opportunistic or taking advantage of a situation that has already happened. For example, if a person were legitimately injured in an accident but pretends that the injuries received were worse and more painful that they were, received money because of it, that would be considered as a soft fraud.

Hard insurance fraud: Hard fraud is causing an accident, staging a theft or intentionally setting up a situation where insurance money is at stake with the intent to receiving that money.

The frequency of fraud: As mentioned above, the exaggeration of legitimate injuries is the most common type of auto insurance fraud. It is very simple to do, even without malicious intent, which is why it is so frequent.

Typical penalties for car insurance fraud

Misdemeanor auto insurance fraud: Most car insurance fraud offenses are considered as crimes and as a soft fraud. These convictions usually mean some form of exaggeration on the claim or a lie in the insurance application. With insurance applications, lies can vary from where the care is stored, Lying about driving convictions, using someone else’s name to purchase insurance or the seriousness of injuries in a minor crash. A misdemeanor offense for this type of insurance fraud can result in a fine, probation and jail time in extreme cases, although it will never be for more than five years. The fine for this crime will vary depending on the seriousness of the offense, but a misdemeanor crime won’t go above $15,000.

Felony car insurance fraud: The auto insurance fraud must involve the destruction of property. For example, someone might own an expensive car and can’t afford to keep up payments, burning it out or paying someone else to do it is considered as a felony offense. The penalties for felony convictions involve jail time that usually lasts from 5 to 10 years. Fines will vary from state to state, but they can run all the way up to $150,000.

If you have been convicted due to this crime, it is recommended to contact a criminal defense attorney to assess you with legal advice. Also if you can’t afford to post a bail, contacting a bail bond agent will be helpful. This video will show you four forms in which you can get busted for an auto insurance fraud conviction.

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