Report shows the discrepancy of auto insurance claims in New York City

New York Auto InsuranceThe Insurance Research Council of Pennsylvania has released a new report concerning auto claims and insured losses in New York City. New York has become infamous in the insurance industry for the multitude of auto claims that come from the state. In recent years, more claims have been coming in to insurers, many of which have been found to be fraudulent. The report highlights the differences in claiming behavior throughout the state and touches upon the discrepancies found in claims.

According to the report, personal injury protection claims have risen by over 70% over the past ten years. The rise in claims includes losses due to medical expenses and lost wages. The average claim in New York City hovers around $15,000 as opposed to the $6,000 average found in other states. The report notes that Brooklyn and Queens are responsible for the majority of claims in the state.

Claimant behavior may be contributing to the expense of claims in New York City. The report shows that most claimants in the metro area seek out chiropractors and other expensive services in the wake of a car accident. These services are typically covered by insurers, but their cost can be quite excessive. The report also shows that some 23% of these claims are fraudulent in nature, with claimants having staged accidents simply to gain access to these forms of treatments.

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