The next time you open your mailbox and see a hike in your auto insurance bill, you must ensure that you don’t get upset with the insurance agent or your insurer. You must instead target all your anger on those who are responsible for this state of affairs – the auto insurance fraudsters. These are the people who have ruined the entire system and created this mess state the local officials. In the State of New York, the average auto insurance rates are the fourth highest and this is due to auto insurance fraud. This bit of information has come from the elected representatives as well as law enforcement agencies.
Auto accidents are staged by con artists and there is an entire network that operates in this scam. This includes unscrupulous doctors who file false claims for medical treatments and they make it look like the persons have suffered serious injuries. They collect the insurance claims by doing all of this, state officials. There are a number of auto insurance fraud cases in the State of New York every year and this costs insurers millions of dollars each year. Hence, the insurance companies have no choice but to pass on these costs to the customers. During 2010, insurance fraud had cost the residents over $204 million, as per reports from Fraud Costs NY, which is a collation of business and civic groups from the state.
The situation is even worse for motorists in Brooklyn stated Sen. Marty Golden.
He claimed that the motorists in his district paid over 185% over the state average for auto insurance cover.
Insurance companies are shelling out millions of dollars each year to settle these fraudulent claims as they don’t have sufficient time on hand to investigate each case and bring the fraudsters to book, stated Golden.
He went on to add that there is one company that has already left New Jersey and is now threatening to get out of New York as well. If that happens, New Yorkers will be short of one company, which means that consumers will have lesser choices and this will in turn drive up the auto insurance rates.
The no-fault auto insurance cover is being blamed for this fiasco. This is a faulty system and criminals have been using the loopholes in this system to get past the no-fault laws at the expense of the motorists in New York, stated Golden. Now Golden has introduced the legislation and hopes that it will help in addressing the problem.