California Auto Insurance Fraud - Penal Code Section 550 PC

Auto Insurance Fraud

Beverly Hills Auto Insurance Defense Attorney

Penal Code 550 states when a person consciously submits any fraudulent information or insurance claims in the state of California to obtain benefits such as money. These fraud laws are established by the Penal Code 548, Penal Code 549, Penal Code Section 550, and lastly, Penal Code Section 551. This crime can occur when someone stages an accident or makes a false statement.

The following are three examples of auto insurance fraud crimes:

  • Owning a vehicle that is registered to an insurance company and reporting the vehicle was stolen to get an insurance payout.
  • Reporting or claiming a car accident that never happened to gain insurance money.
  • Having an auto accident and reporting or causing more damage than what the vehicle actually had.


Law enforcement has special units that aim to proactively stop this crime before there’s any payout. These particular units investigate all of the relevant submitted information carefully. Prosecutors will file cases of those suspected of committing auto insurance fraud, which can be charged as a misdemeanor or an infraction. Penalties range from loss of employment, steep fines, jail time of up to five years, and/or state prison.
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California Penal Code Section 550 PC provides two factors that go towards guilt:

  • If you’ve submitted a claim to an insurance company consciously knowing about the fraud.
  • You intended to defraud the insurance company for monetary gain.
Falsifying documents to defraud an insurance company is why most people are convicted and go to jail for a long time.

Penal Codes for auto insurance fraud in California:

  • California Penal Code Section 548 PC states that if you intentionally damage or break your personal belongings or property to submit a false claim and earn money, you are breaking the law and can go to prison for it.
  • California Penal Code Section 549 PC explains that if you willingly alter documents to file a case claiming false medical ailments to gain insurance reimbursement, you are violating the law. The medical professionals involved in the insurance fraud will lose their licenses.
  • California Penal Code Section 550 PC is mainly used in Los Angeles for auto insurance fraud. When you sign documents falsely stating that you’ve moved to a place where insurance is cheaper, and you haven’t, you can be charged.
  • California Penal Code Section 551 PC states that if an auto repair shop asks for money or a commission for someone to promote their business.
  • California Business and Professions Code Section 810 B%P is for doctors or dentists that tell their patients to submit false information for additional procedures.

If you or someone you know is being investigated for auto insurance fraud, you need to find an attorney with expertise, someone who is willing to fight for you. That’s where DRE Law comes in. Willing to do whatever it takes, DRE’s mission is to ensure you are no longer deprived of justice. Fueled by the tenants of integrity, bravery, and motivation, DRE attorneys won’t rest until your case is completely resolved. But first, you have to reach out at one of their following locations: Santa Ana, Beverly Hills, Ontario, Santa Clarita or Las Vegas.

Darren Richie