Up to five years in a state prison
Though including auto door damages you incurred last summer with the fender damages caused just yesterday by your elderly neighbor may seem OK, it can lead to a conviction for insurance fraud and up to five years in a state prison. California auto insurance fraud laws are covered in Penal Code Section 548, Penal Code Section 549, Penal Code Section 550, and Penal Code Section 551. The legal definition for auto insurance fraud is widely defined and covers many situations. In general, the offense is committed when a person does any act in order to obtain money through fraud from an auto insurance company.
Individual acts of auto insurance fraud
There are many methods by which an individual or group can violate California’s auto insurance fraud laws; some of the more common examples of auto insurance fraud include the following: