Auto-Insurance Fraud and California Courts

By: Shakeel Mustafa

Nine people face felony charges in San Diego County stemming from an auto insurance fraud ring in which the perpetrators filed bogus claims for collisions and thefts that never happened.

The suspects were identified through a two-year investigation called Operation Persistent, conducted by the San Diego Automobile Insurance Fraud Task Force.

State and local authorities said Thursday that the fraud ring had filed 34 false clams for auto property damage over several years, using schemes that included staging collisions and using vehicles that were already damaged.

The fraudulent claims totaled about $200,000 and about $125,000 was paid out, authorities said. Among the insurance companies identified as victims were Allstate, Access, GEICO, Infinity, State Farm, Rental Insurance Services, Fred Loya, Nationwide, Alliance, Farmers, Nations and Travelers.

California Insurance Commissioner Dave Jones said in a news release that insurance fraud is not a victimless crime.

“We all pay for these crimes when insurers pass along the losses through higher premiums,” Jones said.

According to the District Attorney’s Office, the people charged in the case are: Yesenia Perez, 26; Darice Orozco, 37; Oscar Vargas, 31; Jesus Diego, 31; Roberto Ramirez, 27; Abel Ramirez, 31; Maria Linares, 24; Juan Augustin, 30; and Francine Moreno, 25.

Six of the defendants were arrested on Jan. 31, and police are still searching for Moreno. Two defendants were not arrested but received notices to appear in court.

Roberto Ramirez, Abel Ramirez, Vargas and Orozco pleaded not guilty this week in San Diego Superior Court. The others are expected to be arraigned this week and early next week.

About the author:

Shakeel Mustafa lives and works in San Francisco, California. He has in-depth knowledge of preventing auto-Insurance frauds. Shakeel Mustafa was raised in South Africa. During the decade of conflicts he saw the rise of Nelson Mandela, guiding the black majority to freedom. He moved to San Francisco after completing his Bachelor's Degree in Finance from Washington State University, Seattle, Washington and started to work for the State Farm Insurance Company as a Claim adjuster. His primary role was designated to provide competitive auto insurance quotes to the new State Farm Insurance customers. His expertise was focused on investigating the claims submitted for insurance fraud.

Auto Insurance Fraud in Mexico

By: Shakeel Mustafa

It used to be that Americans loved their cars. But tough economic times have put a strain on the relationship cash-strapped drivers now have with their vehicles. Take, for example, the South Carolina man who earlier this year filed an insurance claim, saying his 2002 Ford F-150 was stolen. Police quickly discovered it only miles from his house, engulfed in flames. Investigators couldn't find any signs of forced entry, but what they did discover was that the owner was behind on his payments, had refinanced the truck twice and had lied about it when asked. In a similar incident, a California woman, who was no longer willing to fuel up her 2002 GMC Yukon said it disappeared from the parking lot. Actually, she had arranged to have it chopped up in Mexico and sold off in parts. And then there's the Arizona man, who couldn't afford the payments on his 2006 Dodge Charger who told his daughter's boyfriend that he would give them his blessing to marry, if the boyfriend would only torch his car for the insurance money.

These cases are a handful in a growing pool of what are referred to as "owner give-ups," says Frank Scafidi, a spokesman for the National Insurance Crime Bureau. Whether it's torching, drowning or handing cars over to chop shops, more owners are looking for ways to unload their vehicles, then filing insurance claims saying they've been stolen. According to NICB, such give-ups are up 24 percent in 2009, compared to 2008. Claims related to suspicious vehicle fires and arsons--the most common way to get rid of a vehicle--are up 27 percent for the same period.

About the author:

Shakeel Mustafa lives and works in San Francisco, California. He has in-depth knowledge of preventing auto-Insurance frauds. Shakeel Mustafa was raised in South Africa. During the decade of conflicts he saw the rise of Nelson Mandela, guiding the black majority to freedom. He moved to San Francisco after completing his Bachelor's Degree in Finance from Washington State University, Seattle, Washington and started to work for the State Farm Insurance Company as a Claim adjuster. His primary role was to provide competitive auto insurance quotes to the new State Farm Insurance customers. His expertise was focused on investigating the claims submitted for insurance fraud.

What are the Differences between Home and Renters Insurance

By: Shakeel Mustafa

#1 Coverage for the Structure

One of the main differences between the two types of policies is that homeowner’s insurance covers the house you live in as well as any other building structures on your property. Of course this comes with limitations related to coverage amounts, valid claims, and exclusions. If you live in a rental unit though, your rental insurance doesn’t cover the building, as your landlord has insurance on the actual property. If a small fire breaks out due to an electrical short, your landlord’s insurance will cover the damage to the building simply because the fire wasn’t your fault. On the other hand, if you’re the heating element in the rental property and a fire that’s your fault — intentionally or not — damages your unit, the liability portion of your rental insurance will help cover repair costs.

#2 Cost

Because renter’s insurance doesn’t have as much cost attached to the claims made, a signature difference between this and homeowner’s insurance is the cost. Renter’s insurance is very affordable, and can cost as little as $20 per month. Homeowner’s insurance is much more expensive, but understandably so since you’re insuring an entire house. Generally, houses are larger than most apartments and townhouses, which also means homeowners often have larger amounts of personal belongings. Additionally, homeowners tend to have more valuable personal property too, investing in higher value items like furniture that they plan on keeping for years. If you take a catastrophic homeowner claim and compare it to a catastrophic rental claim, chances are the insurance company will have to pay much more to the homeowner — the exact reason why homeowners insurance premiums are so much more expensive.

#3 Personal Property Insurance

Don’t assume your landlord’s insurance will cover your belongings. This is one of the primary reasons renters seek out insurance. While it doesn’t cover any structural units, it provides protection for personal belongings. Whether they’re stolen or damaged in an accident, renter’s insurance can help replace the damaged items.

One thing renters and homeowners both need to keep in mind when purchasing insurance is the value at which they insure their structure and/or personal belongings. This is where the policies begin to become more similar. You have two options when insuring your belongings to their value: actual cash value or replacement value. Replacement value is the more expensive option, but it insures your house and belongings at the same price it would cost to replace them. This takes inflation into account, and on the structural side, covers entire rebuilding costs for homes. If your house was built in the 1970s, it would be prohibitively more expensive to reconstruct it today, but if it’s insured at replacement cost, you have much more protection.

Actual cash value is a more budget-friendly option, but you need to understand the risk you assume by choosing this method. If you’re a renter insuring your personal belongings at actual cash value, and then experience a devastating fire, the total sum of your belongings’ worth at the time of the incident is the benefit you’d receive. Why is this incredibly important? Consider the costs of everything now, from electronics to kitchen items. You may have furnished your entire apartment with Goodwill findings, but the $300 dollars you receive from the insurance company isn’t going to help you start from scratch and replace every single thing in your home.

Imagine turning your home upside down — everything that would fall out is your personal property. Now imagine what it would be like to have to replace everything, from your toothbrush to your lucky pair of socks. According to a 2012 Allstate study, even the average renter owns $30K of personal property, and respondents estimated that it would take about three years to replace everything they owned in the event of a total loss. Imagine what it would be like to replace everything in a two-story home, where years of personal property have accumulated. In both situations, obtaining adequate personal property coverage is imperative. Unless you’re a hoarder (can’t wait to see you on A&E!), the amount of personal property is relevant to the size of a home, meaning both need adequate personal property coverage as badly as the other.


About the author: Shakeel Mustafa lives and works in San Francisco, California. As a senior claim adjuster he has in depth knowledge of Insurance Policies

Shakeel Mustafa was raised in South Africa. During the decade of conflicts he saw the rise of Nelson Mandela, guiding the black majority to freedom. He moved to San Francisco after completing his Bachelor's Degree in Finance from Washington State University, Seattle, Washington and started to work for the State Farm Insurance Company as a Claim adjuster. His primary role was to provide competitive auto insurance quotes to the new State Farm Insurance customers. His expertise was focused on investigating the claims submitted for insurance fraud.

Ways to get cheap auto Insurance in San Francisco

Cheap Car Insurance in San Francisco :
By: Shakeel Mustafa

Worried about those ever rising car insurance rates in California? Fret not. You are at the right place to solve this issue. Just type in your 5 digit zip code in the above form and California Auto Insurance HQ will immediately guide you on the numerous insurance policies available for you.  Now you would not have to pay a single penny for subpar auto insurance. The entire work would be done by us. All you have to do is type in the zip code and start getting quotes.

All about San Francisco:
With the title of the third most populous city in the state of California, San Francisco is the homeland of over 80,000 people. It was originally a part of Spain but eventually became a part of Mexico. 

The place is known for being a part of the “Gold Rush” in the 1800’s.The population rose afterwards. In addition, the place is also popularly known as the home of the Alcatraz prison and the Golden Gate Bridge.

Why does cost of Auto Insurance Quotes differ In California?

When you purchased your new car insurance policy, you might have come across the fact that quotes differ a lot between carriers and individual policies.  Your personal driving history and your car are taken into account while quoting along with information like the rate of theft and fraud. The list given below is of those cars which were stolen in the state of California. Have a look and see if you own any of these. If yes, then your auto insurance quote might be higher.

About the author:
Mr. Mustafa is a senior Insurance Claim adjuster at GEICO. He works on investigating auto Insurance fraud cases. He is an expert at finding out ways of inexpensive auto insurance. For all people out there looking for ways to get inexpensive auto insurance, this personality has the following tips to offer.

New trends in Auto Insurance Policies, San Francisco

About the Author:

Shakeel Mustafa resides and works in San Francisco. His field of work is auto insurance in which he has gained rich experience. He also commands good hand over auto insurance policy validations and coverages. 

This article has been penned down by in order to forecast the future trends in the auto insurance policies, especially in San Francisco, California where he is currently residing. His potential can be grasped by his experience at work for the major Insurance Companies including State Farm Insurance and GEICO, based in San Francisco. 

Recent Trends in Boost of Costs for San Francisco Auto Insurance Drivers

One can easily avail car facility and online food order with just a few clicks on a smartphone. What about insurance demand? Would this be next? 

In the insurance sector, Policyholders pay premiums to get coverage. This is done for a period of six months or a year. However, for this generation which is getting completely dependent on technical know-how to fulfill its needs, several startups initiating development of apps have led people to customize coverage in order to meet their needs. Talking about one industry mammoth, Northbrook-based Allstate, is collaborating with a better way of charging for coverage in the near future.

Wayne Slavin, co-founder of Sure  said “We’re in the era where we no longer need to buy an entire music album but instead we can purchase just one song, so why can't we just buy the types of coverage we want as consumers?" .The products of Sure are said to include "episodic" insurance around travel through its Smartphone app.

Matthew Wong, senior research analyst for venture capital data gatherer CB Insights, calls it "just-in-time coverage" and the "unbundling" of policy terms and coverages.

There is a silver lining behind every cloud. The same holds true for this sector as well. Thanks to Smartphones and demographic transformation, the sector is witnessing an upward trend. Even the Home ownership rates have gone down.

In the words of Wong," Startups are seeing new opportunities to create brands that adjust to new lifestyle and locational trends, including those of millennials. 

“Funding for insurance-technology startups hit $2.65 billion in 2015, up from $740 million in 2014 and $223 million in 2013,” Wong said previously this year at the OnRamp Insurance Conference held in Chicago.

Let us have a glance at what some companies are doing with on-demand or more customized insurance:

Trov:

A company based in San Francisco has developed a “smart insurance" app which enables users to protect all the things you want from your cell phone and whenever you want without resorting to an insurance agent or a long-term contract.

Basically what happens is that users create an online inventory of anything valuable in their phone and afterwards swipe on all those items of interest that need protection. At the end, they choose a price and deductible that is most appropriate for them. The company is there working in Australia but now is coming to the United Kingdom in the second half of the ongoing year. Then it plans to be available in the United States in the year 2017.All claims can be submitted through text messages.

Some illustrations include: Getting a Mac Book Pro or an iPhone 6 insured against loss or an accidental damage incurred when leaving home.

Taking about the fund raising, Trov recently raised $25.5 million from investors, making a sum of $39 million. Its backers include Connecticut-based Oak HC/FT, whose holdings are backed by Insureon, Maestro Health and Village MD, all situated in Chicago.

Trov performs all its working through mobile apps, collecting both bills and premiums within the app. A part of the proceeds realized from the deal is shared with its insurance underwriting partner. This company is responsible for paying out any claims. That's AXA in the United Kingdom. According to Slavin, airlines' claims procedures have quite a lot of exclusions and require more documentation and time to process.

“If we're not able to retrieve the bags for the customer within 96 hours, we provide them a no-questions-asked payment of $1,000 or $2,000 per bag, depending on the level of coverage, regardless of the contents of the bags," he said. Nor does Sure ask for receipts for the contents of the luggage, he continued. "If the bags are ever returned, the customer can keep both the payment and their baggage."

Sure's baggage coverage starts at $5.