Home / Crime and Justice / NJ Police Investigate Luxury Car Flood Fraud
NJ Police Investigate Luxury Car Flood Fraud
7 Oct
Summary
- Vehicles, including luxury brands, were filmed driving into floodwaters.
- Authorities suspect an insurance fraud scheme post-nor'easter.
- Intentional damage may void insurance claims and lead to charges.
New Jersey authorities are investigating a potential insurance fraud scheme that surfaced in the aftermath of a recent nor'easter. In Edgewater, video evidence shows multiple vehicles, including high-value luxury cars such as Mercedes-Benzes and BMWs, being deliberately driven or pushed into floodwaters. This incident has drawn the attention of the New Jersey Attorney General's fraud unit and the Department of Banking and Insurance.
The state is already grappling with high auto insurance rates, partly attributed to fraud and inflated claims. Experts suggest that individuals involved in such schemes might be attempting to avoid loan or lease payments by having their vehicles declared a total loss. However, if the damage is proven to be intentional, insurance claims will likely be denied.
Insurance professionals emphasize that coverage is for accidents, not deliberate acts. Insurers will scrutinize evidence like video footage, weather reports, and towing records to determine the intent behind the vehicle's submersion. Owners found to have intentionally damaged their cars could face criminal or civil charges and remain responsible for outstanding loan payments, towing, and storage costs.
