"Crash and Buy" Insurance Fraud Doesn't Pay Off
It's been a common trend lately in the world of insurance and it is called the "crash and buy" scam. This is when someone without insurance gets in an accident and then quickly buys a policy after the incident. Only after getting a policy would the individual then make a claim on the accident.
Last year, the California Department of Insurance, along with several law enforcement partners, conducted a statewide sweep, arresting nearly 200 people for "crash and buy" fraud.
California Department of Insurance officials believe Jones made the claim to get her insurance to pay for the damage to her car. She was booked on three felony counts of insurance fraud for filing a fraudulent auto claim.
Last month former Major League Baseball pitcher Ted Lilly was charged with insurance fraud for a similar scenario. Lilly allegedly damaged his RV worth around $200,000 but did not file a claim until after he purchased insurance on the vehicle.
"Unfortunately, this type of insurance crime is surprisingly common. Insurance fraud is an expensive drain on the state's economy that totals into the billions of dollars annually in California. This is not a victimless crime. The cost of these scams is passed along to consumers through higher rates and premiums-everyone pays for insurance fraud."