In California, the prosecution can charge you with auto insurance fraud if you make a false insurance claim or deceive any insurance company intending to receive benefits to which you aren’t legally entitled. The courts usually charge insurance fraud as a felony, and you can serve a jail term of up to 5 years. Under California law, you can be accused of insurance fraud if you hide or damage your vehicle on purpose to claim car insurance if you submit an insurance claim that is fraudulent after your car has been stolen, damaged, or destroyed. Or intending to defraud an insurance company by presenting two different auto insurance claims for the same loss, causing or participating in an auto insurance accident purposefully to collect insurance claims.
Auto insurance crime is a serious offense with severe repercussions. If you or your loved one has been charged with auto insurance in California, it's critical to contact an experienced defense attorney. At California Criminal Lawyer Group in Fresno, we have been representing clients accused of auto insurance fraud for a long time, and they have received highly favorable outcomes.
Read on to understand more about auto insurance in California. You will learn what auto insurance entails, the charges’ penalties, and the defenses you can use to defend yourself against the charges.
Understanding Auto Insurance Fraud According to California Law
Auto insurance fraud is a severe crime in California that carries a possible jail term of up to five years if you’re convicted. In California, the court charges most forms of auto insurance fraud as felonies. However, the court charges some of the offenses as wobblers which means the prosecutor can charge them as a felony or a misdemeanor.
Auto insurance fraud penalties range from sixteen months to five years in jail or state prison. The fine for a felony conviction can be as high as $50,000 or two times the fraud amount, depending on which is greater.
If the court charges the crime as a misdemeanor, the court can sentence you to jail for a maximum of one year or charge you a fine of up to $1,000 or both.
Various Auto Insurance Fraud Sections Under California Law
Under California law, you can either commit hard insurance fraud or soft insurance fraud. Hard fraud is when you fraudulently claim your car has been destroyed or stolen to claim a payout. Examples of hard insurance fraud include intentionally causing an accident and having your car stolen on purpose or staging the theft.
Soft insurance fraud is the most common type in California. You commit soft fraud when you exaggerate the cost of a legitimate claim.
California law has various sections which make it a criminal offense to engage in auto insurance fraud. Below are the major sections of auto insurance fraud laws you can be charged under in California.
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California Penal Code 548, Damaging Or Abandoning A Vehicle
California Penal Code 548 states that damaging or abandoning a vehicle is a crime. According to this statute, if you damage, dispose of, hide, or abandon a car intending to defraud or prejudice the insurance company, you’re liable for an auto insurance offense.
The prosecution must prove to the court beyond a reasonable doubt the following elements of the crime to convict of this crime. First, they must prove you damaged or abandoned a vehicle intentionally with the intention to defraud the insurance company.
According to the law, the court can find you liable for the offense even if the insurance company doesn’t suffer any loss due to your actions. The court can also find you guilty even if you don’t own the vehicle.
For example, if you take your car, lock it in a parking garage, abandon it there, and make a claim from your insurance company, the court can find you guilty of auto insurance fraud.
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Penal Code Section 550(a)(4), Making Fraudulent Claims
Under Penal Code section 550(a)(4), the court can charge you with auto insurance fraud if you make a false presentation or make a fraudulent claim for the damage, theft conversion, or damage of your car. Under this law, you can be liable for the offense if you make a fraudulent claim stating you have suffered a loss due to destruction, conversion, or damage of your car or a part of your car or the contents inside the vehicle.
The prosecution must also prove you knew your claim was fraudulent and false and you had an intention to defraud the insurance company when you made a claim for the court to find you guilty of the crime.
Remember, the insurance company or anyone else doesn’t have to suffer a financial loss for the court to charge you with the offense.
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Penal Code 550, Making Multiple Claims
The court can find you guilty of violating Penal Code 550 if the prosecution proves you presented more than one claim to the same car insurer or presented the same claim to more than one auto insurer.
Additionally, the court will find you liable for the offense if the prosecution proves you had the knowledge you presented more than one claim to the same car insurer or presented the same claim to more than one auto insurer intending to defraud.
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Causing Or Participating In An Auto Accident Purposefully
According to section 550(a)(3) of the California law, it’s an offense to cause or participate in an auto accident purposefully to collect insurance claims.
According to this law, the court will find you guilty of auto insurance fraud if the prosecution proves you caused or participated in an auto accident so that you can make a fraudulent or false claim. They must also prove your intention of causing or participating in the accident was to defraud the car insurance firm.
Causing an accident according to the law means deliberately orchestrating the accident, and it would not have happened had you not behaved in that particular manner.
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Providing False Statements
According to California penal code 550(b)(1), it’s against the law to present a false statement either in writing or orally to receive payment with the knowledge the information you have provided is false or is misleading.
It's also against the law to state you live in California to claim your payment while you don’t reside in the state.
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Auto Insurance By Business Owners Or Employees
An auto-related business owner, employee, or representative can engage in auto insurance fraud. You can do so by soliciting, conducting business with an entity or person who intends to commit insurance fraud. According to the law, it's your responsibility to conduct due diligence to avoid doing business with anyone who intends to commit auto insurance fraud.
Penalties For Auto Insurance Fraud In California
The penalty for auto insurance fraud depends on the type of auto insurance fraud you’re suspected of having committed.
Penalties For Damaging And Abandoning A Vehicle
Under California PC 548, it’s an offense to abandon, damage, hide or destroy your vehicle with the intention to claim payment from your insurance company. In California, the courts charge the offense as a felony. The penalties for this offense include formal probation, two, three, or five years in jail, or a maximum fine of $50,000 or both.
If you have a prior conviction of committing an auto insurance fraud under section 548 or 540, the court will add two more years to your jail term.
Penalties For Violating PC 550
Under California Penal Code 550, it’s an offense to make a fraudulent claim, stating you have suffered a loss due to destruction, conversion, or damage of your car or a part of your car or the contents inside the vehicle. The penalties for this offense include felony probation, two, three, or five years in jail, a maximum fine of $50,000 or twice the amount of fraud, whichever is greater or both the jail term and fine.
If you have a prior conviction of committing an auto insurance fraud under section 548 or 540, the court will add two more years to your jail term. The court will not sentence you to probation or reduce your sentence if you have a previous auto insurance fraud conviction.
Penalties For Intentionally Causing An Accident
According to California law, under PC 550, it’s a criminal offense to cause an accident to intentionally claim payment from your insurer. The penalties for this offense include felony probation, two, three, or five years in jail, a maximum fine of $50,000, or twice the amount of fraud, whichever is greater or both.
The court will also enhance several punishments if you’re convicted of the crime. The enhanced punishments include a two-year jail term for each prior conviction of violating Penal Code 548 or 550. So, for example, if you have five previous convictions, the court can sentence you to ten additional years in jail.
If you have two or more prior convictions of auto insurance fraud under PC 550(a)(3), the court will add five more years to your jail sentence. The court can also add two years to your jail term for each person who suffers severe injuries due to the accident. However, the court will not enhance your punishment if it’s your accomplice who suffers the injuries.
If you personally inflict serious bodily injury while committing the offense, the court can add three or more years to your prison sentence.
Penalties For Making False Statements
According to California PC 550(b) (1-4), it’s a criminal offense to make false statements with the intention to defraud your insurance company. The crime is a wobbler which means the court can charge it as a felony or a misdemeanor. The prosecutor will charge the offense as a misdemeanor or felony depending on the crime details and your criminal history.
If the court charges the offense as a felony, the punishment is similar to filing multiple claims or fraudulent claims.
If the prosecutor charges the crime as a misdemeanor. In that case, the penalties include a misdemeanor or summary probation, a maximum of one year in county jail, or a maximum fine of $10,000 or both.
Penalties For Accepting Or Soliciting Auto Insurance Fraud Business
According to California PC 549, it’s a criminal offense to accept or solicit auto insurance businesses with the intention to defraud your insurance company. The crime is a wobbler which means the court can charge it as a felony or a misdemeanor.
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Felony Penalties
If the court charges the offense as a wobbler, the judge can sentence you to a felony or formal probation, sixteen months, two or three years in jail, charge you a maximum fine of $50,000 or twice the amount of the fraud or whichever is greater. The court can also send you to prison and also fine you.
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Misdemeanor Penalties
If the court charges the offense as a misdemeanor, the judge can sentence you to a misdemeanor or summary probation, a maximum of one year in county jail, or a maximum fine of $10,000 or both.
If you are convicted more than once of the same offense, the court always tries the second and any subsequent charges as a felony, and the penalties are as explained above.
Penalty For Auto Repair Shops Kickbacks
According to California Penal Code 551, it’s a criminal offense for an auto repair shop to offer kickbacks to insurance brokers, agents, or adjusters. The penalties for this offense depend on the amount of money given as kickback.
The court will charge the offense as a misdemeanor if the kickback is $950 or less. The penalties for a misdemeanor include a maximum county jail term of six months, a maximum fine of $1,000, or both.
If the amount involved is more than $950, the offense becomes a wobble which means the prosecution can charge it as a felony or a misdemeanor.
If the prosecutor charges the offense as a misdemeanor and the amount involved in the auto insurance fraud is more than $950, the court can sentence you to a maximum of one year in county jail, charge you a maximum fine of $1,000, or both.
If the court charges the offense as a felony, the penalties include sixteen months, two or three-year term in jail, a fine of up to $10,000 or both jail time and fine.
Some Of The Defenses You Can Present In Court Against Auto Insurance Fraud Case.
In California, prosecutors work extra hard to investigate and try auto insurance fraud cases for various reasons. First, auto insurance is a very prevalent crime not only in California but also throughout the country. Second, according to research, at least 10% of auto insurance claims in the country are fraudulent. To combat the vice, the LA district attorney office has a specialized department to investigate the crime.
It’s, therefore, crucial to enlist the services of a well-experienced defense lawyer to defend you if you are facing an auto insurance fraud case in California.
In addition, the insurance industry can lose a lot of cash if fraudulent claims go through. Therefore, the insurance companies work with the justice department to investigate and prosecute auto insurance defrauders. This close collaboration works well to deter would-be fraudsters from engaging in the vice.
Some the legal defenses you can use to fight off auto insurance fraud charges include:
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You Didn’t Have The Intention To Defraud.
For the prosecutor to charge you with fraud, they have to prove you intended to defraud the insurance company by making a fraudulent claim. Therefore, you can argue that you didn’t have such intentions, and if any fraud occurred, it was purely accidental. However, it’s not uncommon for insurance companies to flag a careless mistake on your part as an attempt to commit fraud. When the insurance flags the error, they may go ahead and report you to the authorities.
However, the prosecution has to prove beyond a reasonable doubt you had an intention to defraud, and it wasn’t an honest mistake. An experienced defense lawyer can argue that it was an honest mistake and cast enough doubt in the prosecutor’s argument that you tried to commit fraud. If your lawyer manages to cast enough doubt on the prosecutor’s argument, the court could drop the charges, or the jury could pass a not guilty verdict.
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You Can Argue There’s Insufficient Evidence To Support The Charges
The prosecution has to work around complicated facts to prove you committed auto insurance fraud. It becomes challenging for the prosecution to prove you committed the offense, especially when witness testimony is conflicting, the paper trail is confusing, and the evidence is circumstantial. An experienced lawyer will find weaknesses in the prosecutor’s arguments and state the evidence presented against you isn’t sufficient to prosecute you of the charge. Your attorney will also work closely with you to gather enough evidence to prove your innocence.
What Other Crimes Can The Prosecution Charge You Along With Insurance Fraud
In California, a few crimes exist which are closely related to auto insurance fraud.
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Arson Which Is Against Penal Code 451 Of California Law
The prosecution can charge you with arson if you willfully and maliciously set a property on fire. Therefore, if you torch your car intending to receive payment from the insurance, the court can charge you with arson. The penalties for arson include a state prison sentence of sixteen months, two years, or three years. The court can also charge you a fine of $50,000 or double the amount of the fraud, whichever is greater.
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Health Care Fraud
It's against the law in California to participate in health care fraud. You could be charged with the offense if you bill your insurance for treatment that you never received, or you exaggerated the cost of treatment or if you submit more than one claim for the same treatment. The punishment for health care fraud is similar to the penalties for auto insurance fraud.
The court can charge you with auto insurance fraud and health care fraud if you make a false statement regarding the auto accident and the expenses you incurred while receiving treatment from injuries sustained during the accident.
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Reporting Your Car Has Been Stolen When it Hasn’t Been Stolen
Under California Vehicle Code 10501, it’s a criminal offense to make a false report that a car has been stolen when that’s not the case. This crime is usually charged together with auto insurance fraud. So the court will charge you for violating VC 10501 if you report to the authorities that your car has been stolen when that’s not the case with the intention to defraud the insurance company.
Making a false report of vehicle theft is a misdemeanor in California. If found guilty, the court can sentence you to up to six months in jail if you’re a first-time offender. If you’re charged with more serious crimes, you can enter a plea bargain with the prosecutor so that they can reduce your charges to making a false report of vehicle theft. The charge has less severe penalties compared to other auto insurance charges.
Call A Criminal Lawyer Near Me
Facing an auto insurance fraud case can have detrimental consequences. The court can sentence you to jail or charge you hefty fines. According to California law, auto insurance fraud has various subsections which could make your case even more complicated. If you have been charged with auto insurance fraud or other related charges, you want to start building your defense strategy right away. Defending yourself against auto insurance fraud charges is extremely challenging without a lawyer’s help because of the complicated nature of the charges. Therefore, choosing an experienced auto insurance fraud crime attorney is one of the best decisions you can make.
At California Criminal Lawyer Group, we have years of experience defending clients facing auto insurance charges in Fresno and the surrounding areas. We will work hard to contest the DA’s evidence against you and build a solid defense strategy to have the court dismiss or reduce your charges. Call us at 559-712-8377 today, and we will offer all the help you need to achieve a favorable outcome.
