Auto insurance fraud is a crime that causes millions of dollars in losses for the insurance companies in the United States. Some dishonest drivers and vehicle owners use various schemes, from staged accidents to filing a claim for unnecessary treatment so that they can recover undeserving insurance benefits. For this reason, the fight against vehicle insurance fraud in California is serious. Under the California PC, vehicle insurance fraud is any incident, conduct, or omission done to defraud a car insurance company.

When you or a loved one faces charges for this crime, you face potentially extreme consequences if your case ends in a conviction. Therefore, seeking the legal insight and representation of an experienced criminal defense lawyer is vital. At California Criminal Lawyer Group, we will utilize various legal defenses to secure the best outcome for your case. If you are battling auto insurance fraud charges in Santa Ana, CA, you will benefit from our legal expertise.

Overview of Auto Insurance Fraud in California

Car insurance fraud falls under the broad category of criminal fraud that has become common in California. The laws on vehicle insurance fraud aim to discourage fraudulent attempts against motor vehicle insurance. Most auto insurance fraud crimes involve filing exaggerated, fraudulent, or fabricated claims regarding vehicle theft, damages to the vehicle, or injuries suffered from an auto accident.

In addition to vehicle owners and drivers making false claims, car repair shops could be charged with insurance fraud for inflating repair costs after an accident. While insurance fraud is not a violent felony and may not cause physical harm to anyone, the crime results in significant financial losses. For this reason, criminal charges for auto insurance fraud attract serious legal consequences.

Vehicle insurance fraud occurs the same way as other insurance fraud crimes, with the only difference being that this crime involves fraudulent activities revolving around vehicles. You can be arrested and charged with vehicle insurance fraud if you engage in any of the following conduct:

  • You hide, destroy or abandon your vehicle to profit from auto insurance compensation.
  • You plan or participate in a staged auto accident to profit from insurance payouts.
  • You prepare or present a false claim to your auto insurance company.
  • You accept business or trade with an individual knowing that they intend to commit auto insurance fraud.
  • You lie about being a resident of California when applying for vehicle insurance.
  • You make multiple claims for a similar vehicle-related loss.

There are several forms of California car insurance fraud crimes. The penalties you face after a conviction for auto insurance fraud vary depending on the fraud crime you are charged with. The most common types of vehicle insurance fraud are addressed under the following statutes:

California Penal Code 548

Section 548 of California law makes it a crime to dispose of, hide, abandon or destroy a vehicle that has been insured against loss or damage with an intent to commit fraud against your auto insurance provider. There are many reasons why a person could abandon or destroy their vehicle, which is not illegal. Whatever your reasons for engaging in such conduct are, it is criminal to go after your insurer seeking compensation.

An intent to defraud your insurer, in this case, means that you planned to deceive them into compensation which can cause them financial loss. Additionally, you could be charged under this statute if you deliberately destroy a person’s vehicle with a similar fraudulent intent. It is essential to understand that the insurance policy for the vehicle in question does not need to be valid for you to be charged under this statute. As long as your fraudulent intent is clear, a conviction under PC 548 may be inevitable.

Under California law, abandoning, destroying, or damaging a vehicle to collect insurance compensation is always a felony. A conviction for the offense will result in these penalties:

  • A prison sentence of two to five years.
  • Felony probations as an alternative to prison time.
  • Up to $50,000 in fines.

If you have a prior felony conviction for vehicle insurance fraud, you risk facing an additional prison sentence of two years.

Penal Code 550(a) (4)

You commit the crime of vehicle insurance fraud under this statute if you make a fraudulent claim for damage, theft, or alteration of a vehicle. California PC 550(a) (4) as:

  • Fraudulent submissions of a claim seeking compensation for theft, damage, or vehicle modification.
  • Filing a fraudulent auto insurance claim with the intention to defraud the vehicle insurance company.

For auto insurance claims involving fraudulent claims, an actual loss is not necessary for your claim to be valid. For example, if you are involved in an auto accident and your vehicle is damaged, any preexisting vehicle damage must be included in your claim. Failure to do this could result in criminal charges for fraudulent insurance claims.

When proving your guilt under this statute, the prosecution must prove your knowledge of the fraudulent nature of your claim. If you never knew that your claim was fraudulent or did not intend to defraud your insurer, you cannot be found guilty of the crime.

Presenting a fraudulent auto insurance claim is a felony under California law. A conviction, in this case, will attract the following penalties:

  • Three to five years in state prison.
  • Fines of up to $50,000 or twice the loss suffered by the victim, whichever is greater.
  • Felony probation.

Additionally, you could face a two years additional prison sentence if you have a prior conviction for this offense or PC 548.

Filing Multiple Claims

Under California PC 550(a) (4), you could face an arrest and charge for auto insurance fraud for engaging in the following conduct:

  • You submitted multiple insurance claims.
  • You knowingly submitted two or more claims with one company or multiple insurance companies.
  • You acted with a specific intent to defraud the insurer by collecting the compensation you did not deserve.

Submitting multiple insurance claims is a felony that attracts a five-year prison sentence and $50,000 fines. Additionally, a two-year sentence may be added to the sentence for a repeat offender.

Penal Code 550 (b) (1-4)

California PC 550(b) makes it illegal for any individual to:

  • Present a written or oral declaration as part of an auto insurance claim. Additionally, it must be clear that you knew that the declaration or claim represents misleading facts.
  • Prepare or make a false statement to present it to the vehicle insurance company for compensation.

In California, presenting, preparing, or making false statements to defraud your auto insurance provider is treated as a wobbler. The offense could be charged as a misdemeanor or a felony. A prosecutor’s decision when deciding on the nature of your charges may be influenced by:

  1. The specific circumstances of your case. The prosecutor may gravitate towards a misdemeanor charge if the amount of money the insurance company lost or stands to lose from your actions is not significant.
  2. Criminal history. California law is strict when dealing with repeat offenders. Anyone with a criminal history of a fraud-related crime could face a felony charge under this statute.

When charged as a felony, making false statements to an auto insurance company will attract a five-year prison sentence and $50,000 fines. However, if you are charged and convicted for a misdemeanor offense, you risk facing up to one year in county jail, $10,000 in fines, and misdemeanor probation.

Penal Code 550(a) (3)

California PC 550(a) (3) criminalizes the act of intentionally causing an accident with the intent to collect compensation money from an auto insurance company. Law enforcement and insurers have a way of detecting whether or not an auto accident was staged. In their attempt to establish your guilt under this statute, the prosecution must prove that:

  • You caused or participated in an accident.
  • You knew that the purpose of the accident was to preset a false insurance claim.
  • You acted with an intent to defraud your insurer.

Additionally, you will be found guilty under this state if the following statements are true:

  • The accident in question was a likely, natural, and direct consequence of your actions.
  • The accident would not have occurred if you did not act deliberately.

Planning an accident to collect insurance payouts is treated as a felony under PC 550(a) (3). If you are found guilty of the offense, you risk facing the following penalties:

  • Formal probation.
  • Prison time not exceeding five years.
  • A maximum fine of $50,000.

The following additional penalties could have been added to your sentence:

  • Two years in prison for every prior felony conviction for vehicle insurance fraud.
  • Up to two years for every victim who suffered as a result of your actions.
  • A five years prison sentence for two or more past convictions for vehicle insurance fraud under this statute.
  • Three years in prison if you inflicted serious physical injury on another person in the process of committing the crime.

California PC 549

It is a criminal offense to refer or solicit a vehicle insurance fraud enterprise. There are many ways owners, representatives, and employees of vehicle dealerships could commit vehicle insurance fraud under these statutes. When these individuals engage in the following activities, they could be arrested and charged with car insurance fraud:

  • Referring, soliciting, or accepting business from an individual with knowledge of their intents to commit vehicle insurance fraud
  • A car repair shop commits or shares any form of compensation from individuals involved in vehicle insurance fraud.

Soliciting a vehicle insurance fraud business is addressed under California PC 549, and the crime is treated as a wobbler. As a felony, a conviction for this offense attracts a jail sentence ranging from sixteen months to three years. Alternatively, you could be required to serve summary probation lasting from one to three years and pay up to $50,000 in fines.

If you face a misdemeanor conviction, the potential penalties for the offense include misdemeanor probation, a one-year jail sentence, and a fine not exceeding $1,000. If you are a repeat offender, a violation of PC will be automatically charged as a felony.

California PC 551

Under this statute, you could face criminal charges if you receive kickbacks from insurance agents or adjusters from repair shops. The penalties you face for violating PC 551 will vary depending on the amount of money you will be receiving for the kickbacks. If you stand to gain $950 or more from the crime, you will face misdemeanor charges punishable by a year in jail and a $1,000 fine.

However, if you receive $950 or more, you could be charged with a felony, face up to three years in prison, and pay a minimum of $10,000 in fines.

Regardless of the auto insurance fraud you are charged with, a conviction for the offense means you will spend a substantial amount behind bars. Therefore, you must fight the charges with the guidance of a skilled criminal defense attorney.

Legal Defense against Auto Insurance Fraud Charges

Facing criminal charges for vehicle insurance fraud can be very frustrating. The prosecution and conviction for the crime can change your life. Fortunately, there is a wide range of potential arguments that your attorney can help you navigate and use to build a strong defense against the charges. While every case is unique and a thorough review will be required, these defenses can be used against all forms of auto insurance fraud:

Lack of Intent to Commit the Crime

A specific intent to defraud the auto insurance company is a critical element that a county prosecutor must prove when prosecuting your case. There are many instances where a thoughtless mistake could be interpreted as an attempt to commit fraud. If such information is conveyed to the authorities, they could arrest you and charge you with auto insurance fraud.

A skilled criminal lawyer will be able to create doubt in the prosecutor’s attempt to establish fraudulent intent in your case. If you can clear yourself from the criminal intent required for the crime, securing a conviction will be challenging for the prosecution, and your charges could be dropped.

Insufficient Evidence

Some forms of auto insurance fraud can be difficult to prove since they involve circumstantial evidence and large volumes of paperwork. Before securing a conviction against you, the prosecution must have sufficient evidence to prove that you committed the crime. If the evidence against you is not solid, the court will not have enough facts to convict you, and they may decide to reduce your charge to an attempted crime or drop the charges. A skilled attorney could exploit the lack of evidence to claim that you did not commit the alleged crime.

Your Claims were Correct

Issuance companies are often very reluctant to pay damages to victims of car accidents or individuals whose vehicles are damaged. Therefore, they could try their best to ensure that they do not make the payouts. In this case, the insurance company could make a report regarding your attempt to claim damages or injury without your knowledge. In most cases, authorities may have more faith in the insurance company. Therefore, your attorney will need to scrutinize the facts of your case to prove that your claim was valid and not fueled by fraudulent intent.

False Accusations

It’s unfortunate that many people continue to face convictions and serve sentences for a crime they did not commit. There are several reasons why you could face false accusations, including anger, jealousy, or even revenge. A person could contact the insurance company or the police and claim that they intend to or are making false insurance claims. You can uncover false accusations and avoid a wrongful conviction with a proper legal defense.

Crimes Related to Vehicle Insurance Fraud

Vehicle insurance is among the many forms of fraud in the US. Some of the common crimes that are related to the offense under California law include:

Vehicle Registration Fraud

California Vehicle Code 4463 makes it a crime to engage in forgery or fraud regarding vehicle registration tags, license plates, or test certificates. California law considers all information on vehicle registration to be official documentation. Therefore, any attempt to tamper with this information could attract criminal charges. Auto registration fraud constitutes the following types of conduct:

  • Creating, forging, or counterfeiting vehicle registration cards.
  • Replacing existing registration information with fake information.
  • Displaying, permitting a display or possession of incomplete, forged, or altered auto registration certificates with fraudulent intent.
  • Possession of altered, fake, or forged vehicle registration cards.
  • Attempting to present a fake or forged car registration card as authentic.

Violation of Vehicle Code 4463 is a wobbler. By weighing factors such as your prior convictions and other factors of your case, the prosecution will decide to charge you with a misdemeanor or a felony violation. As a misdemeanor, auto registration fraud attracts a jail sentence not exceeding one year and $1,000 in fines. If your offense is a felony, a conviction will result in a three years jail sentence and $10,000 in fines.

In addition to jail time, a conviction for this crime may attract a driver’s license suspension. When the court notifies the DMV of your conviction, they may seek to suspend or revoke your license because you provided false information during your application with them.

Arson

The crime of arson involves the willful and malicious setting of fire to a stricture or property. Property, in this case, could include anything from homes, buildings, or even vehicles. If you burn a vehicle for insurance fraud, you burn it during your attempt to destroy a vehicle for insurance fraud. You could be charged with both auto insurance fraud and arson. Arson is a serious felony charged under California PC sections 451 and 452.

A conviction for arson will see you spend up to three years behind bars. Additionally, you may be required to register as a convicted arsonist under CPC 457.1.

California VC 10501

VC 10501 is the statute that addresses false reports on vehicle theft. Such conduct is unlawful and could be linked to vehicle insurance fraud. If you make false reports about an insured stolen car, you could be charged with auto insurance fraud and false reports on a stolen vehicle. Violation of VC 10501 is a misdemeanor punishable by a six months jail sentence.

Health Care Fraud

Health care fraud is a rampant crime that involves the presentation of false and fraudulent medical bills to a health insurer. Health insurance fraud goes together with vehicle insurance fraud, where an accident is involved. If you cause or plan an accident to collect insurance compensation claims, the resulting injuries will be fraudulent.

Road accidents reported each day in California could either be fraudulent or genuine. You can be charged with both health care fraud and auto insurance fraud, and a conviction for both offenses will result in severe punishment.

Find a Skilled Santa Ana Criminal Defense Lawyer Near Me

California laws on auto insurance fraud are designed to prevent and punish any false claims made to a vehicle insurance company with an intent to gain unlawful payments. A simple act such as exaggerating injuries after an auto accident could result in an arrest and serious charges for auto insurance fraud. Although fraud is not a violent offense, a conviction can attract severe penalties, including a lengthy prison sentence and fines. Additionally, having a conviction for felony vehicle insurance fraud on your record could have long-lasting consequences on your personal and professional life.

If you face an arrest and are charged with auto insurance fraud, there is a chance that you can fight the charges and avoid the harsh consequences that accompany a conviction. Battling criminal charges for violating PC 211 will be easier if you have the guidance of a criminal attorney by your side. At California Criminal Lawyer Group, we have extensive experience defending auto insurance fraud charges, and we will help you build a strong defense to ensure the best possible outcome. We serve clients seeking legal guidance and representation in Santa Ana, CA. Call us today at 714-844-4151.