Will I Get Jail Time for Car Insurance Fraud in California?
When someone files a claim for car insurance benefits, the insurance company investigates it. If it determines that the claim is fraudulent, it often reports it to law enforcement as attempted fraud.
Auto insurance fraud is defined under California Penal Code Sections 548 through 551.
It's well known that car insurance fraud is one of the most common types in Los Angeles County.
There are many ways to commit the white-collar crime of auto insurance fraud.
- You could face charges under Penal Code 548 PC if you intentionally damage or abandon your car with the intent to collect car insurance money.
- You can also face criminal charges if you knowingly submit a fraudulent claim due to alleged damage or theft of your vehicle.
- Auto insurance fraud also includes a situation where somebody exaggerates the alleged damage on their vehicle or claims pre-existing damage.
- Other examples are making multiple insurance claims for the same car accident or even staging an accident to collect insurance money.
Auto insurance fraud in Los Angeles County has been a huge issue for insurance companies for decades.
Any false claim could result in a criminal prosecution if the insurance company decides it was made fraudulently. This includes claims for auto collision, fire damage, stolen property, or any other claim for insurance benefits.
Our Los Angeles criminal defense lawyers provide an overview below for more information.
California Laws Related to Auto Insurance Fraud
Penal Code 548 PC – damaging or abandoning a vehicle,
Penal Code 549 PC – referral to an auto repair shop for fraud,
Penal Code 550 PC – submitting fraudulent insurance claims,
Penal Code 551 PC – unlawful referral to auto repair dealer,
Penal Code 451 PC – arson,
Vehicle Code 10501 VC – false report of vehicle theft,
Insurance Code 871 – workers' compensation fraud.
Factors That Determine Penalties for Auto Insurance Fraud
The authorities are prosecuting all sorts of car insurance fraud scams. In determining whether you'll get jail or prison time in California, you have to look at several factors. First:
- how much money is involved?
- Is it a few thousand dollars? Is it $10,000, $20,000, or more?
That is going to be one of the big factors in deciding whether the judge or prosecutor fails, like in a jail or prison case.
The next thing they're going to look at is your criminal record:
- do you have a clean record, or do you have criminal offenses like strikes?
- do you have a situation where you have other theft-related offenses on your record?
Those are going to be looked at. If you've got a prior strike and pick up a new felony or car insurance fraud-related crime, you're probably looking at prison time.
So, you want a very good attorney to represent you under those circumstances.
Another big factor that prosecutors will look at is the sophistication level involved with the crime.
In other words, I've seen many cases of car insurance fraud involving people planning accidents or torching their cars.
So, often, associated with these car insurance fraud cases are, for example, arson and other related offenses that make sense, depending upon what type of crime you're talking about and what the alleged scheme is.
Defending Auto Insurance Fraud Cases
So, if you want to avoid jail or prison time in these cases, you want to put together a mitigation package, and that's done through your attorney. I put those together all the time for my clients, and we:
- lay out what their situation is,
- what type of job do they have,
- whether they have a criminal record or not,
- can they pay back the money?
A big consideration is whether you can pay back money if it was lost by someone or an insurance company, for example.
That's a good mitigating factor that could help you avoid jail or prison time versus people who cost thousands of dollars worth of damage and can't pay it back.
You'll still be ordered to pay it back as part of restitution. However, the authorities know it's very difficult to collect that much money, and the prosecutors know that.
Develop a Strategy to Avoid Jail Time
The bottom line is that there are many ways to avoid jail or prison time for an insurance fraud-related offense in Los Angeles County, but you must have a strategy and a game plan.
That's why I get you in my office, and we sit down and go over who you are, what you're all about, and your story. A lot of times, the police don't investigate it right and don't get the proper version of what happened.
So, once we get that story together, we know exactly how we will handle things.
We start collecting evidence to bolster that story, and in doing so, we can set up a defense if the prosecutors see problems with their case.
Even though they might have a case against you and might be able to prove a crime, there are still options.
A lot of times, we will be able to work something out so that you don't go to jail because that's definitely a factor if the prosecutors have problems with their case.
They have to consider that when making an offer.
Coronavirus factor
The last thing that I would say about jail time or prison time when it comes to insurance fraud cases, as I make this post, is because of the Coronavirus, because of overcrowding in both the county jail and state prisons, you have a very strong chance of keeping out of jail.
Also, in line with the new head district attorney's policies, that's another factor that keeps you out of jail.
So, get a great attorney. Pick up the phone. Call Ron Hedding. We'll set things up for you and use the system to get you the best resolution and keep you out of jail.
