Auto Insurance Fraud Increasing—how It Affects Policyholders

North Hollywood, CA, January 23, 2009 --(PR.com)-- InsuranceBureau.com reports that economic conditions are creating a surge in (http://www.InsuranceBureau.com) auto insurance fraud. Faced with job loss, auto loans they cannot afford or cars that have greatly depreciated in value, some consumers are illegally filing auto insurance claims.

The new surge of auto insurance claims deal with autos reported stolen that have actually been abandoned, parked in precarious places intentionally with doors unlocked or cars sold to overseas buyers. Staged vandalism acts and accident are also increasing. Some are setting there car on fire after stuffing it with accelerants, dumping it in a large body of water or pushing cars into a steep ditch or off of a sharp embankment in order to collect auto insurance claims. Many authorities have found expensive vehicles left along the coast right in the path of hurricane Ike and Gustav. Unfortunately auto insurance fraud eventually leaves insurance holders picking up the tab. One source estimates that $300 a year in (http://www.InsuranceBureau.com) auto insurance premiums goes toward covering auto insurance fraud. Auto insurance fraud is illegal and carries a large fine and sometimes prison sentence but these dangers have not slowed down the number of new auto insurance fraud cases popping up.

http://www.insurancebureau.com
6400 Laurel Canyon Blvd, Ste 460
North Hollywood, CA 91606
Phone: 800.647.2164
Fax: 800.647.2142
Eric Oster

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