38 people involved in large fraud operation in New York have been indicted
A large auto insurance fraud ring has been disrupted in New York. According to the Northwestern District Attorney’s Office, 38 individuals have been indicted on insurance fraud charges from grand juries in Hampshire and Franklin counties. These people are alleged to have been participating in auto insurance within their local areas and within New York City itself. The indictments come on the heels of the completion of a year-long investigation from the Insurance Fraud Bureau of Massachusetts.
Fraud continues to be one of the most problematic issues in the auto insurance sector
Fraud is currently one of the most significant problems facing the auto insurance sector currently. Fraudulent activities have had a major impact on the cost of insurance coverage for drivers and, in some cases, have left people with a great deal of financial stress. Insurers have also had to deal with the financial impact of fraud and many have responded to fraudulent activities by raising rates for the coverage that they provide.
District Attorney expects hundreds of thousands of dollars have been lost due to premium avoidance conducted by the fraud ring
In this instance of insurance fraud, those involved were paying significantly lower premiums than they should have because they offered up false addresses. The District Attorney’s Office notes that this has been happening over the past six years, leading to hundreds of thousands of dollars in premium avoidance. For honest drivers, this has lead to higher insurance rates.
Insurance fraud is making coverage for the typical driver more expensive
Insurance fraud is a major problem that often goes unnoticed by consumers. According to the National Insurance Crime Bureau, fraud adds as much as $300 a year to the average insurance premium. Staged accidents, fraudulent injury claims, and offering false information to insurance companies are the most common forms of fraud in the auto sector. Fraud is more prevalent in some states than it is in others. States with no-fault insurance laws often have a higher degree of fraudulent activity, especially in the auto insurance sector.