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Central Valley a hotbed for auto insurance cheats

The number of questionable and suspicious auto insurance claims filed in California increased by 9 percent between Jan. 1, 2008 and Dec. 31, 2010, the National Insurance Crime Bureau says in a report released Thursday.

Sacramento (fifth), Fresno (seventh), Stockton, (eighth) and Bakersfield (ninth) were in the state’s top ten cities for questionable insurance claims last year, the report says.

In 2008, a total of 15,609 California QCs were referred to NICB from its member insurance companies compared with 16,274 in 2009 and 17,082 in 2010. That represents a 9 percent increase in 2010 from 2008 numbers.

Questionable claims are those claims that NICB member insurance companies refer to Des Plaines, Ill.-based NICB for closer review and investigation based on one or more indicators of possible fraud. A single claim may contain up to seven referral reasons

Most referrals were for “questionable vehicle theft” followed by “faked/exaggerated injury.” Under policy type, “personal automobile” was the single most cited policy generating 9,144 QCs in 2010 statewide — 54 percent of all California QCs in 2010.

“Insurance fraud is not a victimless crime,” says Joe Wehrle, NICB president and CEO. “It impacts anyone who buys insurance through higher premiums.”

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Written by lordsinsurancelog

April 14, 2011 at 5:29 pm

Posted in Insurance News