SUV Owners Seeking Gas Price Respite With Arson
Rising gas prices have had countless effects on today’s automotive environment. Manufacturers are turning to alternative methods to reduce fuel consumption and thusly attract buyers; including ethanol blended gasoline, hydrogen fuel cells, and gasoline-electric hybrids; but what’s a current car owner to do? Well, most sources suggest proper maintenance is the key to saving at the pumps; keeping your tires properly inflated, regular use of combustion chamber cleaner, and changing your spark plugs are a few favourites. But recently, gas-hungry SUV owners have taken some action of their own. Namely, pouring gas all over the vehicle and lighting it on fire.
While certainly not the best use of pricey gasoline, insurance fraud of this type is a rising trend as a result of high fuel prices. A recent sting operation conducted in Southern California netted an entire arson ring that would torch a debt-ridden SUV owner’s vehicle in exchange for $300. Operating out of the financing department of a local car dealership, the SUV owner would contact the finance manager in hopes of trading their gas-guzzling SUV in exchange for something a little more economical. The finance manager then put them in touch with an arsonist who, for the $300 fee, would burn the car to the ground. Using an undercover office and an SUV-mounted camera, the ring was busted, and eight people in total were arrested.
This isn’t a new trend either. Insurance fraud vehicle arsons went up by 34 percent between 1998 and 2002, prompting analysts to conclude that the rate of vehicle arsons increases during times of economic hardship, marked by periods in which the owners of financed vehicles find themselves in an “upside-down” financing situation where they actually owe more than the vehicle is worth. Of course, it shouldn’t take a degree in macroeconomics to figure that out.
To combat this quick-fix to poor money management, the United States enacted a law that requires all owners of burned motor vehicles to sign and file a report describing the fire. This report must then be signed by a fire official from the same area where the fire occurred. If the circumstances appear suspicious, an investigation ensues. The law seems to be working, and the number of vehicle fires reported in the U.S. has dropped substantially with only 217 reported last year.
In Canada, where no such law exists, insurance fraud is believed to account for between 10- and 15-percent of the $1.3 billion worth of claims filed every year. Additionally, the RCMP estimates that investigating and resolving insurance fraud costs Canadians another $1 billion in societal expenditures.