Behind On Payments, More Are Burning Cars
Insurance fraud is on the rise nationwide amid a struggling economy, with a growing number of "victims" illegally reporting cars stolen or destroyed, according to a Los Angeles Times report Monday.
Suspicious vehicle fires and arson jumped 27 percent – from 596 to 757 - in the first quarter of this year, according to the National Insurance Crime Bureau. Cases of owners intentionally destroying or abandoning their cars climbed 24 percent.
Cash-strapped car-owners bank on the fact that insurance companies won't scrutinize every claim, giving them a chance to get out from under the steep costs of owning a vehicle.
While investigators are busier during financial downturns, vehicle fraud can often be hard to prove. It's also minor compared to the more than 1 million cars reported stolen each year.
The increase in fraud doesn't just extend to people trying to get rid of their cars, either. Suspicious personal injury claims were up 60 percent in the first quarter; staged car accident cases jumped 34 percent and commercial property fire/arson cases spiked 76 percent, according to the report.