There is growing evidence of increased cases of car owners fraudulently dumping their unwanted vehicles for insurance money, according to research by the Coalition Against Insurance Fraud.

Officials in nearly a dozen state and local jurisdictions around the United States report clear warning signs that so-called owner give-ups are rapidly spreading, CAIF said.

The signs include recent increases in suspected vehicle arsons, rising investigations of suspected give-ups, and in some cases a spike in arrests, the coalition reported.

"Insurance fraud normally increases during a troubled economy," Dennis Jay, executive director of CAIF, noted in a statement. "The credit crunch, subprime meltdown, higher gas prices and general economic distress have led more drivers to seek a bailout through insurance money. They're literally being driven to desperation."

Drivers typically torch their vehicles, sink them in waterways, simply abandon them in remote areas, or even sell them to chop shops, CAIF said. The drivers then tell their insurer that someone stole the vehicle. This is a traditional insurance scheme that is rapidly spiking this year, Mr. Jay said.

Among the CAIF's findings:

o Arrests increased 25 percent in New York, with most happening in the New York City area, according to the state's insurance department.

o In New Jersey, suspected vehicle arsons rose from 59 in 2004 to 94 by August 2008, the state's Fire Marshal said.

o In Ohio, where unemployment has hit a 15-year high, vehicle arsons reached 3,168 last year compared to 2,872 in 2006, the Fire Marshal there said. In Columbus, vehicle fires rose from 140 in 2005 to 202 in 2006.

o In California, insurers referred 50 percent more suspected give-ups to the insurance department during the fiscal year ending June 30. In Fresno County, 12 people allegedly ran a ring that burned vehicles for clients.

o In Utah, the fraud bureau was investigating 30 suspected give-ups as of early September, compared to a normal caseload of one or two.

o In Arkansas, the fraud bureau logged 18 suspected give-ups just in July and August compared to a normal caseload of one or two for the entire year, the fraud bureau said.

o State Farm reported a substantial increase in suspected give-ups in Florida. Local law enforcement in the Miami area is seeing a spike in the number of give-ups.

Insurers and police are on the lookout for these frauds, "so it's a lousy way of trying to get out of a financial jam," warned Mr. Jay. He noted that perpetrators of these acts can find themselves with a criminal record and possibly jail time, plus still be responsible for paying off their car loan.

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