New York Auto Insurance Fraud

New York auto insurance fraud has been a problem for many years and some legislators were hoping for a new law to help this problem. One reform type was left out according to the article "NY Lawmakers Fell Short on Auto Insurance Fraud" by Rafe Lieber on MPNNow.com. This reform involved passage of the "Fraud Tax Bill" which would have helped lessen the amount of high level fraud throughout the state of New York.

The article points out that New Yorkers pay on average 53% more for auto insurance rates than the rest of the nation and this is partly due to the no-fault auto accident policy. Research shows that approximately $1 billion has been stolen from the state in the last five years because of organized auto insurance fraud groups that stage accidents and run up bills with the help of participating physicians. New York lawmakers did not pass the bill this year, but this doesn't mean it won't happen eventually.

There is a possibility that the New York legislature will get together again before the end of 2011 to discuss other options. The state hasn't been passing bills including "Alice's Bill" which many consider to be common sense. This bill would make staging an accident in New York a standalone crime in hopes of making punishment harsher. Alice was a New York resident who was killed during a staged accident which shows the severity of this awful crime. Hopefully New York will work towards making it harder for criminals to commit serious auto insurance fraud.

New York Auto Insurance Rates

High gas prices may ultimately mean lower New York auto insurance rates. The state insurance department is requiring auto insurance companies to justify their insurance rate increases in light of reduced travel because of rising gas prices.

GEICO has agreed to put a cap on its auto insurance rates and many other insurance companies are expected to follow suit.

Auto insurance rates in New York state are the third highest in the country.

New York Auto Insurance Rates

If you live in New York, your auto insurance rates could be following gas prices north.

Auto insurance companies in New York, which already charge the second-highest auto insurance rates in the nation, would be able to hike monthly premiums by as much as 5% a year without the state's okay under a bill quietly introduced last week.

A law allowing auto insurance companies to hike or cut rates by 10% lapsed years ago, and the Insurance Department has had to sign off on all rate changes since then.

Consumer advocates fear the new bill, which sponsors are pushing to pass before the legislative session ends this week, will ultimately drive up costs at a faster rate.

For years, under a different insurance committee chairman, the Assembly refused the attempts by Senate Republicans to go back to a flex rating system.

The New York Insurance Superintendent has indicated in the past he supports allowing New York Auto insurers to raise or lower rates without permission up to a certain point.