More in state torching cars

High gas prices, low trade-in values drive trend, experts say

Michael Malik, Rocky Mountain News

Monday, August 28, 2006

A growing number of Coloradans are setting their cars on fire, according to six years of data from state fire safety officials.

The steady increase can be chalked up to rising gas prices, low trade-in values for SUVs and other economic pressures, insurance industry experts say.

"The sharp spike in gas prices are affecting people who bought SUVs when gas was much more affordable," said Jim Quiggles, director of communications for the Coalition Against Insurance Fraud.

He said people who normally wouldn't steal a pen from a bank dig themselves a hole by buying "large four-wheel battleships" they can't afford.

"Torching their car for insurance money is a quick, easy and, for them, painless way out of a serious financial bind," Quiggles said.

There were seven intentional car fires in the state in 2000, according to the Colorado Department of Public Safety and Division of Fire Safety.

Five years later there were 83.

The concept is simple: A person pays someone or takes their vehicle to a remote location, sets it on fire and then reports it stolen. Once the burned-out shell is found, the person files an insurance claim.

This might seem like a harmless way to erase some debt, until the car owner is investigated for insurance fraud.

Filing a false claim and getting caught usually results in a theft or forgery charge, both of which are felonies, a spokesman from the Colorado Attorney General's Office said. Depending on the charge, the person can receive a fine and jail time.

Capt. Tony Berumen of the Denver Fire Investigation Unit said when economic pressures increase - gas prices being one of them - vehicle fires increase. This has been the case the past few years, he said.

The fire investigation unit responded to a vehicle fire in 2003 that fit the pattern. Denver Fire Department records give the following account:

A Denver man couldn't afford the costs of his 2000 Lincoln Navigator, so he reported it stolen. Later that day the torched SUV was found in an alley about 15 miles from his house. Investigators were able to track down a suspect and the man admitted to taking $500 to burn the SUV for its owner.

Carol Walker, executive director of the Rocky Mountain Insurance Association, said any time economic pressures increase, it's more likely people will turn to fraud.

"Cars these days just don't combust," she said. "A lot of times when you do see a car fire, unless there's something you can directly point to, it's usually arson."

While the number of vehicle fires are increasing statewide, Denver has seen a steady drop since 2003, according to data from the Denver Fire Department. There were 130 such fires in 2003 and 81 in 2005.