Saturday, April 30, 2011

Faked Car Crashes Increase NY Insurance Rates

From The Daily News by Celeste Katz

Faked Car Crashes Jacking Up NY Insurance Rates

An increase in auto insurance fraud helped push New York's already sky-high rates up 4% last year, the Daily News has learned.

In many cases, experts say, accidents are staged and corrupt clinics submit fraudulent claims for treatment that was either not performed - or not needed.

Most of those staged accidents occur in Brooklyn, the Bronx and Queens, according to industry experts and state officials. The industry estimates fraud cost insurers and drivers more than $241 million last year.

Companies inundated the state Insurance Department with 12,807 complaints of suspected no-fault auto insurance fraud last year, up from 10,117 five years ago.

1 comment:

ajlounyinjurylaw said...

Crooked claims that cost the insured more and more. It's a crime that effects everyone.