GoPro Video Proves Insurance Fraud Against Vette Owner

Discussion in 'Auto Insurance Forum' started by Brian Anderson, Feb 10, 2017.

  1. Brian Anderson
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    Brian Anderson Executive Editor Moderator

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    The nerve - or sheer stupidity - of some people!

    A C7 Corvette owner told Geico he totaled it in a wreck on I-10 in Chandler, Ariz. Geico paid $61,465 to settle the claim, but then discovered a YouTube video (link below) showing how the Vette REALLY got totaled - on a drag strip after he lost traction and smashed into a wall. Owner even had his own GoPro video of it.

    The owner pleaded guilty to insurance fraud after the Arizona Department of Insurance Fraud Unit investigated, and after a plea agreement paid back the $61,465 to Geico, plus $1,560 in court costs. He will also serve two years of supervised probation for the insurance fraud.

    Ever run into suspected cases of fraudulent claims?

    C7 Corvette Video Uncovers Insurance Fraud | GM Authority
     
  2. VolAgent
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    VolAgent Guru

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    Yep, so many people are their own undoing. He got off easy.
     
  3. djs
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    djs Super Moderator Moderator

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    I wonder if Geico would have denied the claim if he had been honest about the loss upfront..... They usually denies these on the basis of it being a willful unlawful activity or racing for money (business use). I doubt either of these applied in this case. I'm not sure if drag racing on an approved, legal strip would be a basis for denial, by itself. I've never had it come up.

    In checking a Geico Policy, there is no exclusion that I see that would prevent them from paying the actual collision that happened on this video. There are a lot of details that are unstated that could change that answer, but drag racing alone does not appear to be a reason to deny the claim.

    Dan
     
  4. indienoise
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    Most drag strips have attendees sign a waiver barring recovery regardless of fault. I've seen claims denied that would have been paid, no question, any where else, due to the waiver.
     
  5. djs
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    djs Super Moderator Moderator

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    I would have thought those waivers would only apply to recovery from the drag strip. Not sure how it would impact their personal auto policy.

    Now, don't get me wrong. You drag race, I'm not sure it should be covered, but I don't see anything that prevents it from being covered. This would explain why he walked away with pretty much just a slap on the hand for the insurance fraud. He still had the loss, he just used the wrong set of fake-news facts.

    Dan
     
  6. indienoise
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    indienoise Guru

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    I thought the same. In the occurence I'm aware of, though, the waiver was cited as reason for denial. I don't remember the carrier unfortunately, as this was a dozen years ago and when I was working from the other side of the claims process. (PI law firm)
     
  7. Brian Anderson
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    Brian Anderson Executive Editor Moderator

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  8. Justin Bilyj
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    Justin Bilyj Guru

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    I knew of a course of workman's comp fraud, supposedly caught the guy delivering papers at night while off work from a disability. Had to pay it all back and some..
     
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