The State of California has experienced a recent spike in fraud cases when it comes to auto accidents reported by insurers. Many experts say the primary reason for the sudden increase is related to the downturn in the economy. More people are out of work, trying to make ends meet, and unfortunately, many have turned to unscrupulous practices in order to hold on to the little bit of money that they still have. There was a drastic increase in auto arsons and suspected fraud auto thefts reported in 2009 and the numbers have continued to rise in recent years.

Suspected cases of fraud have been reported by auto insurers all throughout California from auto insurance Sacramento carriers to car insurance Los Angeles companies. As a result, it can become even more expensive to insure a car in California without doing your research and partnering with a stable provider. Many of the cheapest insurance carriers around have been forced to increase their rates. Thankfully, here at Cheap Insurance, we have been able to maintain cheap car insurance rates for our customers.

The problem of fraudulent claims is costing insurers, nationwide, an estimated $80 million per year. There are a number of scams that have surfaced, as a result of dishonest individuals looking to reap financial benefits through fraudulent auto claims. These activities often end up compromising the safety of innocent people as well as hiking up their insurance rates. Believe it or not, there are even organized crime rings that stage auto accidents in order to file false claims!

Below are some of the most common scams to be aware of:

There are many ways drivers can protect themselves from these scams. It is important not to tailgate another driver in the event the driver stops short. Drivers should also keep a disposable camera in their car if they do not have camera capabilities on their cell phone. From an overall standpoint though, it is always important to remain vigilant whenever operating a motor vehicle.