im not sure what lawyer i need for auto insurance fraud

If you are charged with a crime involving insurance fraud, you definitely want to consult with an experienced fraud lawyer. An attorney can explain the charge to you, the facts underlying it and what your defenses might be. The penalties for insurance fraud can be significant, including fines in the thousands of dollars and a prison sentence.

Full Answer

Do I need a lawyer for insurance fraud?

You need to have an experienced criminal lawyer at your side when facing these charges. Also, if you think you have been the victim of insurance fraud committed by an insurance company, you should consult an insurance bad faith lawyer who can review your options for making a claim against the insurance company.

Who can commit car insurance fraud?

Both drivers and companies can commit car insurance fraud. Drivers can also be the victims of auto accident scams in some cities, organized and otherwise.

How can I protect myself from car insurance fraud?

Below are some recommended ways to help keep yourself safe from car insurance fraud according to the Coalition Against Insurance Fraud: Make sure the agent and company are licensed in your state. Be especially careful if you don’t recognize the company’s name. Contact your state insurance department, which issues licenses.

Can I file a lawsuit for auto fraud?

If you believe you have been the victim of auto fraud by way of misrepresentation, you may very well be able to file a lawsuit. Some states will require car buyers to contact the dealer first to give them the opportunity to correct the matter or to speak with a state consumer protection agency.

How do you deal with insurance fraud?

Go directly to the insurer you think is being defrauded. Some companies have systems in place for reporting fraud. If the company doesn't have a reporting system or fraud hotline, call or write the company headquarters.

How can car insurance prove fraud?

Another way of violating California car insurance fraud laws is to: Present two (2) or more claims for the same loss to the same or several different auto insurers; Knowing that you are submitting two (2) or more claims for the same loss; With intent to defraud.

Is lying to an insurance company a crime?

You could face criminal penalties. A false insurance claim can lead to jail, substantial fines, and a permanent criminal record. Lying to your insurance company could seem like a good idea at the time, but in reality, it's a form of insurance fraud.

In which claim most frauds occur?

1. Application Fraud. Application fraud happens when you knowingly and intentionally provide false information on an insurance application. It is generally the most common form of insurance fraud, being responsible for up to two-thirds of all denied life insurance claims alone, according to the Los Angeles Times.

How do I dispute a false car insurance claim?

Australian Financial Complaints Authority (AFCA) If you disagree with the decision, you can apply to the NSW Civil and Administrative Tribunal (NCAT) or start a court case. For more information on lodging a dispute, see Make a complaint on the AFCA website. There are time limits for lodging a dispute with AFCA.

What happens if you lie to car insurance?

Intentionally lying to your insurance company is a form of fraud, and could result in fines, community service, or even jail time. If you lie to your insurance provider, you could be denied coverage, quoted higher rates, or face penalties like fines, community service, or even prison.

How long does an insurance company have to investigate a claim?

within 30 daysIn general, the insurer must complete an investigation within 30 days of receiving your claim. If they cannot complete their investigation within 30 days, they will need to explain in writing why they need more time. The insurance company will need to send you a case update every 45 days after this initial letter.

How to avoid insurance fraud?

Avoid any suspicion of insurance fraud by being as honest as possible in your insurance application and when filing claims. If you suspect you may be the victim of an insurance scam or fraud, contact your car insurance company or your state’s Department of Insurance.

What percentage of car insurance claims are fraud?

What is car insurance fraud? According to the National Insurance Crime Bureau, an estimated 10% (or more) of property and casualty insurance claims may be fraud, and those fraudulent claims lead to higher premiums across the industry. Car insurance fraud comes in many different stripes.

What are the most common types of car insurance scams?

Below are a few common types of car insurance fraud and scams. 1. Falsely reporting a stolen vehicle. When your car is stolen, your insurance company will consider it a total loss and it will be covered by your comprehensive coverage.

What are the consequences of car insurance fraud?

The consequences for car insurance fraud vary, from denied claims and dropped policies to fines and even jail time.

What does it mean to buy car insurance?

When you buy a car insurance policy, you’re essentially signing a contract with the car insurance company. They agree to cover the costs after a car accident — either of the damage you caused to others or to your own car — and you agree to pay your premium on time and in full to keep your policy active and make sure you’re protected.

What is ACV in insurance?

The insurance company will pay out the actual cash value (ACV) of your car and you can use the payout to buy a new one. But if a policyholder intentionally abandons, destroys or sells their vehicle and then claims it’s stolen, that’s a serious form of insurance fraud. 2. Exaggerating claims.

What is hard fraud?

Hard fraud - When you make up an incident altogether, like selling your car and then claiming it was stolen. Soft fraud - Typically instances like falsifying or exaggerating elements of a real claim, such as saying an old scratch on your car happened during a recent accident.

What Is Car Insurance Fraud?

This practice can generally be described as any action done with the purpose of collecting insurance money that the individual is not entitled to.

What Are the Common Types of Auto Insurance Fraud?

So far, numerous forms of insurance fraud involving automobiles have been discovered. Here are some examples of the most common ones:

Legal Ramifications of Committing Car Insurance Fraud

Before anything else, it’s important for us to specify that the actual legal ramifications depend on where you live and where the crime has been committed. Punishment also depends on how the crime has been committed, how many people collaborated, and how much was actually at stake. The aspects highlighted below don’t constitute legal advice.

Three Intriguing Auto Insurance Fraud Cases

Our first case takes us to Houston, Texas, where a high-school chemistry teacher was arrested for bribing two of her students with passing grades in exchange for having them torch her Chevrolet Malibu.

How Much Do Auto Insurance Frauds Cost the Insurance Industry?

In the United States, a report published by the FBI concluded that insurance fraud leads to $40 billion in yearly losses. However, this number covers all insurance industries, except the medical field.

Bottom Line

Based on everything that has been outlined so far, insurance fraud is a multi-billion-dollar market, and car fraud leads to millions of dollars awarded in exchange for bogus claims.

Why Would Someone Commit Insurance Fraud?

There are a number of reasons why someone would commit insurance fraud, but in this section, we’ll touch on just a few common reasons.

Types of Car Insurance Fraud

There are many different types of car insurance fraud, so we would like to break it down for you to help give you a better understanding of each type.

What Else Should You Know about Bodily Injury Insurance Fraud?

There are so many different types of fraud, but in this section, we’ll cover some of the types of fraud that involves your insurance coverage and insurance rates.

How Do People Commit Fraud through Bodily Injury Claims?

According to the Coalition Against Insurance Fraud, it is the “unneeded treatment of phantom injuries. Usually, these are bogus soft-tissue injuries such as sore backs or whiplash, which are difficult to medically identify and dispute.”

What Are The Most Common Ways of Committing Car Insurance Fraud?

Now that we’ve covered some of the different types of car insurance fraud, we’ll discuss a few of the more common ways in which these types of fraud are committed such as:

What Is Vehicle Dumping?

ehicle dumping is when an individual does something to dispose of their vehicle and claiming that it was stolen.

What Is False Registration?

As you probably know, where you live can affect what kind of insurance premiums you will pay. Things such as the particular region demographics, per capita disposable income, and other various factors can determine what you’ll pay.

What is insurance fraud?

Insurance fraud occurs when an individual deceives an insurance company to obtain an improper financial benefit. This deception can occur through the making of false statements. For example, a person may file a claim for damage to a car that was in an accident, and overestimates the amount of damage to obtain more money than they are entitled ...

How long can you go to jail for insurance fraud?

For example, in Montana a fraud involving insurance benefits exceeding $1500 can be punishable by up to 10 years in prison and a fine of $50,000.

What type of fraud is committed by making false statements or omitting required information?

Insurance fraud committed by making false statements or omitting required information, occurs with the following types of events: Automobile Accidents: Individuals can exaggerate the amount of damage to a vehicle, or the extent of an injury sustained during an auto accident;

What is the most common type of fraudulent claim?

This is how insurance companies identify the most common kind of fraudulent claim — one in which an insured person has a legitimate claim for a loss, but exaggerates the value of it in order to profit from the claim. Insurance companies also have fraud departments that have developed methods for detecting fraud.

What are some examples of fraud?

An example is when a store owner intentionally sets their store on fire to recover fire insurance proceeds. Insurance fraud is a crime. The penalties for committing criminal insurance fraud can include the payment of fines and/or a prison sentence. The sentence imposed depends on how severe the fraud is.

What type of insurance covers the cost of compensating people who are injured in an accident?

Common types of insurance include automobile insurance, homeowner’s insurance, health insurance and life insurance. Automobile insurance covers damage to or loss of a car, whether in an accident or by theft. It also usually covers the cost of compensating people who are injured in an accident. Homeowner’s insurance covers damage to or loss ...

What is the purpose of special investigative units in insurance?

The employees of the special investigative units are trained to detect claims that might be fraudulent. They can then investigate to determine if in fact the claim is fraudulent.

How to file a lawsuit against an insurance company?

After you decide to file a lawsuit against your insurance company, you should perform the following steps: Send a written letter to your insurance company requesting them to send in writing their denial of your claim and a detailed reasons as to why your claim was denied, as well as demanding they payout your claim;

What is the most common legal theory for suing an insurance company?

As mentioned above, the most common legal theory for suing an insurance company is a breach of contract theory. When you succeed in a breach of contract claim, you are first entitled to actual damages, which includes what you were supposed to receive under the contract.

What happens when an insurance company breaches its duty of good faith?

When an insurance company breaches their duty of good faith and fair dealing, such as by wrongfully denying a properly filed and covered claim, then the insured may recover not only their actual claim damages, but punitive damages as well.

Why do insurance companies sue?

The following is a list of several legal theories and reasons of why an insured may sue their insurance company: 1 Failure to Pay On Time: As mentioned above, insurance companies have a duty to act in good faith. Therefore, if an insurance company does not make reasonable efforts to timely pay our a properly filed claim, then the insured may be able to make a bad faith claim. Another bad faith may occur when an insurance company offers an unreasonably low amount of money to settle a claim. 2 Failure to Represent: Another common reason why an insured may sue their insurance company is if their insurance company refuses to defend them in a lawsuit against them, as provided under the insurance policy. Further, if the insurance company accepts an unreasonably low settlement for the insured’s claim while representing them, the insured may also have a bad faith claim against the company. 3 Breach of Contract: The most common legal theory that insurance companies are sued upon is a breach of contract theory. An insured may sue their insurance company if the company fails to follow the terms of the insurance policy.

How to notify insurance company of a claim?

Although it may seem obvious, you should first notify your insurance company of your claim by filing an insurance claim with the company, as it is your duty as the insured to let the insurance company know that a covered incident has occurred. You may notify your insurance company by either a phone call, an online claim form, ...

What happens when an insurance company does not indemnify the insured?

Thus, lawsuits often arise when an insurance company does not indemnify, or protect, the insured from a covered act under the policy or when an insurance company otherwise does not fulfill their end of the contract, such as by wrongfully denying an insurance claim.

What is a contractual relationship between an insured and an insurer?

Therefore, a legal contractual relationship exists between an insured, the person who agrees to pay a premium for coverage, and an insurer, the company/group which agrees to protect the insured if a covered event occurs. Thus, lawsuits often arise when an insurance company does not indemnify, or protect, the insured from a covered act under ...

What is the cause of auto dealer fraud?

One common source of auto dealer fraud is when the auto dealer fails to disclose the used status of a vehicle.

What are the considerations when hiring a lawyer?

Often, it comes down to whether it is worth the price of hiring a lawyer. Some considerations include: Assessment of Damages. For any civil cause of action, there are usually specific damages that the plaintiff may be able ...

What causes of action may provide statutory damages to the victim?

Some causes of action may provide statutory damages to the victim, such as claims based on state statutes regarding deceptive trade practices or the violation of consumer protection statutes. Additionally, fraud cases may warrant certain statutory damages. Statutory damages provide a certain amount of damages based on certain offenses ...

What are actual damages?

Actual Damages. A person’s actual damages stem from the economic loss that they suffered due to the auto dealer’s fraud. In some auto dealer fraud cases, people may lose their down payment. In other cases such as those involving identity theft, the auto dealer may be alleged to have stolen the victim’s identity.

Can you get reimbursement for attorney fees?

Some causes of action allow a plaintiff to request reimbursement for attorney fees. If the plaintiff is able to receive these damages, there is little consequence to pursuing the case since attorney fees and costs to bring forth the case may be reimbursed.

Can a judge order punitive damages?

In some cases, a judge or jury may order punitive damages. This is more likely in cases in which the auto dealer’s actions are particularly egregious. Punitive damages are often calculated as a variable multiplied by other damages.

What is insurance fraud?

Insurance fraud occurs when people deceive an insurance company in order to collect money to which they are not entitled.

What is fraud under federal law?

Certain types of fraud, such as health care fraud, are also crimes under federal law. Insurance companies can also commit fraud by improperly denying a policy holder or health care provider a benefit that is due. To learn more about his topic, see When Your Insurance Company Won't Cover You: Fraud and Bad Faith.

What is the definition of knowingly making a false or misleading statement?

Knowingly making a false or misleading statement. Like other forms of fraud, insurance fraud requires that the defendant knowingly make a false or misleading statement, or, in other words, tell a lie. Simply not telling the truth is not enough--the defendant must do so knowingly, which means he must intend to make the statement and be aware ...

What is an automobile claim?

Automobile claims. This occurs when someone either exaggerates or fabricates a claim made to their automobile insurance provider. For example, a person may claim that the extent of damage that occurred in an automobile accident was greater than it actually was, in order to obtain a larger payment from the insurer. Life.

What is soft fraud?

Soft fraud is usually considered a misdemeanor, punishable by fines, jail time of up to one year, community service, and probation.

What is a false statement in insurance?

The false statement must have been made in support of, opposition to, or connection with a claim or payment made or to be made under an insurance policy.

Why do insurance companies charge higher premiums?

The costs are ultimately borne by policyholders and consumers, because insurance companies charge higher premiums to cover their losses from fraud. Individual and business premium rates go up, and businesses often pass along the increased costs to their consumers.

What are the remedies for a car accident victim?

Some possible remedies that the victim may be entitled to collect on include: Surrendering the vehicle and getting a full refund of all payments made toward the purchase. Canceling any outstanding loan balances or obligations. Having court costs and attorney fees reimbursed.

What is lemon law?

While “ lemon laws ” cover the sale of defective vehicles, car dealer fraud laws are meant to protect consumers looking to purchase a car, truck, van, or motorcycle.

What are the two types of misrepresentations?

There are two basics types of auto dealer misrepresentations: omissions of fact and blatant misrepresentations. Most lawsuits will be filed under a theory of “ bait and switch " advertising practices, deceptive inflation of vehicle prices, and failure to disclose information about a vehicle.

Can you sue an auto dealer for fraud?

If you believe you have been the victim of auto dealer fraud by way of misrepresentation, you may very well be able to file a lawsuit. Some states will require you to contact the dealer first to give them the opportunity to correct the matter or to speak with a state consumer protection agency.