Auto Insurance Fraud Revealed by YouTube Video

In an interesting case of the bad guy never wins, it looks like siblings attempting to commit an insurance scam got ratted out by a YouTube video. After two tries at making false auto insurance claims, the owner of a Nissan GT-R supercar and his sister were arrested on felony charges in California.

Scam Once, Shame on You, Scam Twice, Jail for Two

Jay Xi Chen and his sister Tracy Chen Chen of Diamond Bar, Calif., were arrested at their residence on March 5, charged with felony insurance fraud for allegedly filing false auto insurance claims. All six counts for Jay and one count for Tracy were related to Jay’s Nissan GT-R.

The investigation of the siblings started after Jay reported to Farmers Insurance Exchange that his sister was involved in a collision while driving his car on March 16, 2009, a story Tracy corroborated. Having an apparent change of heart, Jay withdrew his claim and said he would fix the car himself.

Then on June 2, 2009, he filed another claim for the same vehicle, stating that he crashed the car this time. The only problem was that a local collision repair shop reported that it had Jay’s unrepaired vehicle since March. To make matters worse, a video on YouTube was found that showed the very car crashing into a wall after driving in a street race. The car had the same damage as the one in Jay’s claim, damage that would total $76,000.

Due to the reckless behavior of the car’s owner (street racing and posting the video), both he and his sister face at least five years in prison and $10,000 in fines if convicted.

Avoid Auto Insurance Fraud by Shopping Around

People attempt some form of auto insurance fraud every day, which is why New York Senator Chuck Schumer has gone as far as to propose the Cheaper Car Insurance Act as a way to enforce federal penalties on those who commit the act. But there are other ways to lower your auto insurance rates that don’t require scamming the system.

One of the best ways is to shop for auto insurance with different companies. By comparing quotes, you’re sure to finda company that will offer the rates you’re looking for at a price that won’t encourage you to file some false auto insurance claims.