Texas and New York both take part in improving auto insurance for their local drivers. Senator Charles Schumer proposed a bill that will reinforce laws regarding car insurance fraud for New Yorkers. For Texas drivers, the public roads have become safer for motorists, which resulted to fewer accident claims and cheaper insurance costs.
In New York, Senator Schumer has proposed a bill that will increase the penalty for auto insurance fraud and will create federal jail sentences for felons convicted of the said offense. Expediting the implantation of the said bill is Albany County State Senator Neil Breslin who is now holding hearings that will tackle automobile fraud in the state.
According to the New York Daily News, fraud cases in the state have increased by nearly 33% since 2006 and have caused an estimated 6% increase in policy premiums over the last year.
Sen. Schumer said in an interview that partly because of insurance fraud, auto policy rates in New York are now $250 more expensive compared to other states. Schumer adds that fraud is quickly spreading in New York City and will soon explode in upstate locations unless appropriate legislative actions will be enforced to rectify the situation. Experts predict that once Schumer’s bill is implemented, New York may be relieved of rampant crimes in insurance fraud.
On the other hand, the Insurance Council of Texas recently reported that the number of deaths and injured civilians caused by car accidents in the state has continued to go down since 2003. After the Texas Department of Transportation took over in managing the records of traffic reports back in 2003, injuries and fatalities have significantly decreased by more than 20%. The Council also reported that car premium rates have remained favorably stable. A recently published report published by the National Association of Insurance Commissioner ranks Texas as 19th among states with the most expensive auto policy premiums. Experts were afraid that due to the increase in the costs of vehicle repair and medical expenses, rates in Texas may go up. Fortunately, the decline in crash and injury rates provided cushion for the inflation.
Insurance Institute for Highway Safety spokesman Russ Rader said that Texas is now following the growing trend in the US when it comes to road safety. Rader adds that nationwide, collision and car accident rates have declined to historic low. A nationwide movement towards enhanced road and vehicle safety and more responsible drivers can be felt in the country, and Texas is quickly keeping up with that trend.