Auto insurance fraud meets aggressive action in Massachusetts
Auto insurance fraud has been a growing problem in Massachusetts. This problem began receiving significant attention from state lawmakers more than a decade ago when a staged accident caused resulted in the death of a state resident. A new report from the Insurance Fraud Bureau of Massachusetts and the Automobile Insurers Bureau of Massachusetts highlights the progress that the state has made in its ongoing fight against auto insurance fraud. The report suggests that the state’s continuous efforts have saved consumers from significant premium increases over the years.
More than $875 million saved in premiums
According to the report, the fight against auto insurance fraud has saved drivers more than $875 million in premiums so far. Auto insurance tends to cause significant spikes in coverage due to the losses that insurance companies experience through staged accidents and other acts of fraud. By combating fraud, state lawmakers have helped the cost of coverage steadily decline over the past several years.
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Premiums are on the decline
The report notes that the number of fraudulent claims being generated by auto accidents has fallen significantly over the past decade. In terms of costs, the report shows that auto insurance premiums have been falling, going from $1,613 in 2003 to $1,260 in 2011. One of the contributing factors to the decline in premiums is the state’s work to improve driver safety and encourage better driving habits among consumers.
State may serve as example to others dealing with auto insurance fraud
The report suggests that those perpetrating auto insurance fraud have taken note of the measures state lawmakers have been taking. As the state grows more aggressive with these measures, those committing fraud are beginning to alter their practices or avoid fraudulent activity altogether. Massachusetts may serve as a powerful example to other states around the country that continue to struggle with the economic effects of auto insurance fraud.