The Consequences Drivers Can Face If They Are Committing Car Insurance Frauds

LOS ANGELES, July 10, 2019 /PRNewswire-PRWeb/ -- Cheapquotesautoinsurance.com has launched a new blog post that explains how insurance frauds are handled by car insurance companies and the authorities.

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Auto insurance fraud is becoming a serious issue in the US. Auto insurance providers are losing billions of dollars each year, and for this reason, the price of car insurance is higher for everyone. Depending on the circumstances, the penalties for car insurance fraud can be quite severe.

The penalties for car insurance frauds are the following:

•     Misdemeanors. Most car insurance convictions are misdemeanors. Usually, misdemeanors are exaggerations done on insurance claims or lies on insurance applications. The lies written on the insurance application can vary from where the policyholder is storing the vehicle, lying about driving convictions, or using the name of another person in order to buy insurance. Many fraudulent personal injury claims are being reported each year. Obtaining a conviction for car insurance fraud is very hard, and even if a fraud is proven, it usually is a misdemeanor. Misdemeanors car insurance frauds are usually punished with fines, probation or even jail time. However, jail time convictions are very rare and the persons convicted will not spend more than 5 years in prison. On the other hand, fines are more often, and they are as high as $15,000 to $30,000.
•     Felonies. These types of insurance frauds involve the intentional destruction of property. Arson or staged accidents with human fatalities are examples of felonies. In felony cases, insurers will investigate everything more carefully. The penalties for felonies car insurance frauds are very harsh. Probation in these cases is very rare. Convicted fraudsters will normally go to prison for a period that is between 5 to 10 years. The fines are also huge, sometimes reaching $150,000.

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