Is Automobile Insurance Fraud Illegal?
3 Answers
Insurance fraud is illegal. Here is an introduction to automobile insurance: 1. Components: Automobile insurance generally consists of two parts: basic insurance and additional insurance. Basic insurance is further divided into vehicle damage insurance and third-party liability insurance. 2. Coverage: Vehicle damage insurance covers the loss of the insured vehicle; third-party liability insurance covers damages to targets other than the insured vehicle, such as people and public property hit by the vehicle, or the other party's car; passenger liability insurance covers the loss of people and property inside the insured vehicle; theft insurance covers the loss when the insured vehicle is stolen; no-deductible insurance ensures 100% compensation in case of an accident. If no-deductible insurance is not purchased, the insured will bear 30% of the deductible for each accident.
I'm quite familiar with this issue, as I recently helped a friend deal with a similar inquiry. Automobile insurance fraud is not only illegal but could also land you in jail! Both the Insurance Law and the Criminal Code clearly state that intentionally causing accidents, fabricating scenes, or falsifying repair costs can lead to criminal charges if the amount involved exceeds 5,000 yuan. Last year, there was a case where a car owner colluded with a repair shop to stage a tree collision for insurance fraud, but they were caught falsifying dashcam data, and all three individuals involved were sentenced to actual prison time. Remember, insurance companies are very sharp—claims adjusters have eagle eyes, and repair shops dare not issue false certificates. If you're genuinely involved in an accident, follow the proper procedures and don't try to cut corners.
I work at an auto repair shop and often encounter customers asking 'how to inflate insurance claims.' Every time, I have to advise them: it's really not worth it for just tens of thousands! Insurance companies now use AI to detect fraud—scanning accident collision angles, paint oxidation levels, and part wear conditions reveals everything. Last week, a BMW claimed to be rear-ended, but the inspection found old damage on the rear bumper repainted with fresh paint, landing the owner directly on the blacklist. Nowadays, insurance fraud not only requires repayment and fines but also leaves a mark on your credit record, affecting future car loans. If repair costs are tight, honestly negotiate with the insurer—it’s a hundred times better than jail.
