Auto Insurance Fraud
Approximately 45% of all suspected fraudulent automobile
insurance claims in California are from Los Angeles County. In
total, it is estimated that automobile insurance fraud results in
losses in excess of $8 billion a year. Because losses are passed to
consumers in the form of higher insurance premiums, everyone bears
the financial burden. When fraud artists resort to staged accidents
or other dangerous tactics, the safety of everyone on the road can
be jeopardized by their crimes.
The District Attorney’s Office recognizes that with the growing
sophistication of automobile insurance fraud rings, an equally
sophisticated and aggressive law enforcement effort is required to
combat them. To that end, the District Attorney’s Office has
established an Automobile Insurance Fraud Division with
specially trained staff to investigate and prosecute this costly
criminal activity, which can include:
- staged accidents
- "paper" accidents which never actually occurred
- medical treatment fraud
- fraudulent claims by auto body repair shops
- fraud involving the issuance of insurance policies or
processing of claims
- feigned or staged automobile thefts
- crimes of violence, such as manslaughter, which may arise from
staged accidents
The Division focuses on the prosecution of individuals or groups
engaged in multiple acts of insurance fraud. Defendants can include
claimants, policy holders, attorneys, doctors, chiropractors, law
office administrators, body shop operators, and insurance agents or
brokers.