Posted by: Connie Yee
In today’s changing economy, more Americans are returning or selling their luxury cars. But there are some individuals who are enforcing creative tricks to cheat the automobile insurance companies. In some instances, people are abandoning their cars in ditches and on the side of the highway. They then hope to collect insurance claims after reporting their car stolen. This phenomenon has been growing in the Great Lakes region, New Jersey, California and Las Vegas.
With high unemployment, individuals can no longer afford to pay their monthly car payments. In Las Vegas, detective Menzie reported that he has witness four cars burned or abandoned in 24 hours. This type of automobile insurance fraud case first started in 2007 when gas prices were high. During the following year, 2008, the number of automobile insurance claim increased by 6% nationally. In Ohio, the Columbus Division of Fire reported 255 automobile fires in 2009 alone. While some were legitimate fires, at least 26 of the 235 fires were considered arson. According to the Coalistion Against Insurance Fraud, they deemed this type of behavior as “vehicle give-up” which is when “car owners set their vehicles ablaze, sink them in lakes or rivers, leave them for passers-by to find or sell them to chop shops, or groups that sell overseas.”