The state is now leading the country in organized scams to the vehicle coverage industry.
An auto insurance news report was just issued by the Insurance Federation of Minnesota, which made a call to legislators, prosecutors, and regulators to increase their efforts to crack down on the fraud that is occurring within the industry in this state.
This request is to boost the efforts that these officials have already been making for this purpose.
There is already a crackdown in place to help to stop the no-fault auto insurance fraud that is rapidly rising within the state. However, new statistics that have been released this week have shown that the state is still in dire condition. In fact, Minnesota is leading the country with the highest rate of organized crime of this nature in the entire country.
The NICB also released a report which showed that Minnesota’s auto insurance fraud was up 230 percent.
The National Insurance Crime Bureau (NICB) report indicated that in the last four years, the organized auto insurance fraud problem in Minnesota had grown by more than double, mostly because Florida, New Jersey, and New York have implemented their own scam fighting efforts.
Bob Johnson, the president of the Insurance Federation of Minnesota, said that “It’s unfortunate, but the crack down on fraud in other places has led to a dramatic increase in fraud here in Minnesota and it’s costing every driver in the state.” He also added that “Organized criminal gangs are coming here in record numbers and setting up medical clinics that submit fake bills and stage fake accidents to collect No-Fault benefits they don’t deserve.”
It is estimated that drivers in the state are now paying auto insurance premiums that are millions of dollars higher than they should be every year, as a result of the fraud activity that is occurring. The NICB’s auto insurance news report indicated that there was a “reverse migration” pattern emerging, where fraud fighting efforts in other states were causing criminals to relocate to areas where there is no fault coverage and that anti scam efforts are not as highly enforced.