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What Is Considered Insurance Fraud in California?

State laws define various types of insurance fraud, including claims related to automobile insurance, health insurance, workers’ compensation insurance, and property insurance. There are different ways that a person can try to defraud an insurance company, and such actions can lead to serious penalties.

Different types of insurance fraud include the following:

  • Burning of property to collect insurance money
  • Claiming that property was damaged in an accident when it was not damaged
  • Faking an accident to receive money
  • Falsely stating that a vehicle was stolen to collect money
  • Falsifying a personal physical injury to collect money
  • Overstating the damage to property

California Penalties for Insurance Fraud

The punishment for an insurance fraud conviction depends on the specific type of insurance fraud and the defendant’s activities.

Penalties for insurance fraud in California include the following:

  • Misdemeanor in California results in a sentence of up to 1 year in county jail, a fine of up to $10,000 or both
  • Felony results in a term of imprisonment for 2-5 years and a fine of up to $50,000.
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