‘Fake hit-and-run’ staged in Los Angeles to claim insurance money, California authorities say

California authorities say that CCTV footage and neighbours have foiled a “fake hit-and-run” crash staged for an insurance payout in a Los Angeles-area neighbourhood.

California Department of Insurance released footage showing a driver positioning a car in a residential intersection, getting out and walking away later before another vehicle slams into it.

The driver of the second vehicle exits, and both people walk away from the scene.

The department said a woman walked over to the first vehicle after the crash and got inside.

She claimed to be the victim of a hit-and-run crash, officials said.

Five people are accused of staging the incident and filing a false insurance claim for up to $30,000.