How California Auto Insurance Companies are Being Conned Into Helping SUV Owners Leave Their Debt in the Ashes

How California Auto Insurance Companies are Being Conned Into Helping SUV Owners Leave Their Debt in the Ashes

Would you say our economy's taken a downturn? I'd say our economy's taken a downturn, and even with falling gas prices the owners of gas guzzling, high octane SUVs are paying the price. With a vehicle price tag of $35,000 or higher drivers who are scraping to afford their rent can't afford to pay their car payments. Here's a look at how they're using their California auto insurance companies to torch their debt-literally.

Statistics show…don't you just love statistics? I do. Statistics show that every time our economy starts to take a dip the number of vehicle arsons goes flying through the roof. If you'll remember, your insurance company will pick up the tab if your SUV goes up in flames. And if you've recently picked up GAP insurance you're going to be covered for the difference between your lien and the value of your vehicle. So while you might not be able to afford the cost of your monthly payment after falling victim to the crashing economy and sweeping unemployment striking the nation you can torch your SUV and file an auto insurance claim to recover your investment.

And many, many drivers have.

Police recently cracked open a ring of arsonists working out of a dealership in Southern California. The group had made a very profitable enterprise out of convincing SUV owners that it would be easier to simply pay their $300 fee and hook up with an arsonist who would willingly torch their SUV. Once the truck has burnt to a crisp the driver collected a fat check from their insurance company that would more than balance out the couple hundred dollars they paid to have the car fried in the first place.

Unfortunately, the cops figured it out. An undercover detective posed as a frustrated SUV driver looking to trade his gas guzzler in for a more economical model. The dealership offered to hook him up with the arsonist, who found himself on candid camera and locked in the car when he slipped in to grab his money.

Courtesy of the fast moving police and the faster moving kill switch, the arsonist wasn't going anywhere. Police arrested seven people that day and brought the company's nefarious activities to a close.

When someone is stuck in what's known as an "upside down" car lien or lease it's tempting to take the easy way out. After all, if you owe more on the SUV than it's actually worth you're not going to be losing anything. It's not illegal to blow up your own car. (Yes, a driver actually used that one in court.) It is, however, illegal to lie to your California auto insurance providers and tell them it was an accident.

No sense of humor. No sense of humor at all.

If you're stuck in an upside down car loan payment schedule or lease and you need a way out, consider selling your car and trading it in for a cheaper model. It's perfectly legal, and you'll be behind the wheel of a new car and a lower car payment before you know it.