Car Insurance Premiums Rise as Crash Scams Increase
Car-Crash Scams on the Rise
Gangs of thieves stage accidents, fake injuries and then collect millions in fraudulent insurance claims. The criminals usually work in groups to stage the accidents and make fraudulent insurance claims. A typical scam might include paid witnesses, several drivers, passengers who will claim injuries, and medical providers who will make false claims for the treatment. Questionable insurance claims from such staged crashes are on the rise, the National Insurance Crime Bureau reported this week, up 46% from 2007 to 2009. Florida leads the list of states with the highest number of claims from staged accidents in the three years (3,006), followed by New York (1,680), California (1,619), Texas (792) and Illinois (433).
No-Fault Insurance Fraud in New York State is Ramping Up Premiums
Fraud is driving up the cost of auto insurance for New York State drivers, particularly those who live in New York City's five boroughs and its neighboring suburbs. As a result, some people are paying four times more for no-fault auto insurance than the state average and seven times more than drivers in Albany, which has fewer cases of fraud.