Car Insurance Fraud for Dummies

Insurance fraud schemes have been around since insurance was first offered. $87 billion is spent each year paying out claims for accidents and injuries that never occurred, and the cost is passed on to the consumer, sending everyone’s auto insurance rates higher. Some scams are sophisticated while others are downright idiotic. Read on for some of the worst car insurance fraud fails of all time.

school bus

1. Wedding Day Bus Rental Fail
A groom and his parents claimed they suffered injuries from an accident that occurred on their way to the wedding. They tried to sue the operator of the bus they charted, and submitted a videotape to prove they’d been in the bus. Fast-forward a bit on the tape, however, and there they were dancing up a storm after the accident. They sued for 1,500 lbs. each, but the judge made all three pay 73,000 lbs. for court costs.


2. Teacher Car Torching Fail
A high school chemistry teacher was so overwhelmed by her car payments that she came up with the brilliant idea to pass two failing students in exchange for them torching her car. Not particularly bright outside the classroom either, the students mentioned the incident and the teacher was busted. She lost her job and was sentenced to 90 days in jail for car insurance fraud. Now she has no car to make payments on and still owes the money.


3. Ex-Husband Van Crash Fail
Two couples came up with the idea to crash one couple’s van into a tree and to file a false car insurance claim to get some money out of it. Here’s where their combined I.Q. really starts to shine – they taped it. One of the women, who was in a vicious divorce battle with a soon-to-be ex-husband lost the tape, which was found by…you guessed it, her soon-to-be ex-husband. He turned it into the police and the two men and two women received 24 months of probation and a wrecked van.

But worse than defrauding your insurance company is driving without insurance. So if you’re uninsured now, or are thinking ways to get out of it – don’t. Instead, use Go Insurance Rates to find the lowest auto insurance rates possible.