Vehicle damage severity rose more than 42% from 2020 to the third quarter of 2025. Traffic deaths have fallen and personal auto insurers have returned to underwriting profitability, but the cost of the claims that remain continues to climb, according to a report released Oct. 2 by the American Property Casualty Insurance Association (APCIA). In […]
NICB, Honk Partner to Combat Predatory Towing and Vehicle Services Fraud
The National Insurance Crime Bureau (NICB) has formed a strategic partnership with Honk Technologies, a towing and roadside assistance platform, to pool data and intelligence targeting fraud and abusive practices in vehicle towing, impound, storage and salvage, NICB announced Sept. 24. Under the agreement, the two organizations will establish channels for sharing information and emerging […]
North Carolina Charges Towing Company Manager in $4,250 Fraudulent Invoice Case
North Carolina Insurance Commissioner Mike Causey announced the arrest of Antonio Lorenzo Covington, 32, of 114 Woodman Ave., Charlotte, on felony charges of insurance fraud and obtaining property by false pretense. Special agents with the state Department of Insurance’s Criminal Investigations Division accuse Covington, general manager of Tow Godz LLC, of submitting a $4,250 fraudulent […]
New York Budget Agreement Includes Auto Insurance Reforms
Budget package includes measures aimed at reducing fraud, premiums. New York Gov. Kathy Hochul and legislative leaders have reached agreement on a fiscal 2027 state budget that includes a package of auto insurance reforms aimed at reducing premiums that rank among the highest in the country. New Yorkers pay an average of just over $4,000 […]
Three Sentenced in California “Operation Bear Claw” Insurance Fraud Scheme
Three Los Angeles, Calif.-area residents have been sentenced for their roles in an insurance fraud scheme that used a person in a bear costume to stage fake animal attacks on luxury vehicles, the California Department of Insurance announced April 16. The defendants submitted claims to three different insurers for interior damage to a 2010 Rolls […]
Florida Announces Arrest of Insurance Agent for Fraudulent Tow Truck Policy Scheme
Florida Chief Financial Officer Blaise Ingoglia announced the arrest of a licensed insurance agent and an unlicensed individual for selling fraudulent commercial insurance policies for tow trucks in Miami-Dade County. Javier Gonzalez Jr., a licensed insurance agent, and Aliba Lamas Alvarez were arrested Feb. 5 by the Department of Financial Services Criminal Investigation Division. Investigators […]
San Francisco Tow Company Operator Sentenced to Five Years in Federal Prison for Arson Conspiracy
Defendant also received concurrent 27-month sentence for fraudulent auto insurance claims scheme. Jose Vicente Badillo, the owner and operator of two San Francisco Bay Area towing companies, was sentenced to 60 months in federal prison for his involvement in a scheme to burn competitors’ tow trucks throughout the Bay Area in 2023. U.S. District Judge […]
Washington State Senate Passes Insurance Fraud Bill with Collision Repair, Appraisal Provisions
Legislation would expand the definition of insurance fraud and extend statute of limitations to 10 years. The Washington State Senate passed legislation Feb. 17 that would upgrade insurance fraud to a class B felony, expand the definition of the crime to cover vehicle repair billing fraud and appraisal manipulation, and extend the statute of limitations […]
Pennsylvania Tow Truck Operator Ordered to Pay $379,000 Restitution for Insurance Fraud, Theft
Pittsburgh towing company owner pleaded guilty to insurance fraud, theft by deception. Prohibited from working in towing industry. Pennsylvania Attorney General Dave Sunday announced that the owner of a Pittsburgh-based Vince’s Towing has pleaded guilty to felony charges regarding tow costs inflated by charging “accident services” fees and other deceptive practices. An Allegheny County Court […]
Insurance Group Urges Federal Task Force on Staged Car Crashes
The National Association of Mutual Insurance Companies has called on the U.S. Department of Justice to establish a task force to investigate and prosecute staged car crashes used for insurance fraud. NAMIC President and CEO Neil Alldredge sent a letter to Attorney General Pam Bondi requesting the task force, citing the prevalence of coordinated schemes […]
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