New York, NY -- (SBWIRE) -- 02/18/2013 -- New York Motor Insurance, a startup company specializing in the auto insurance field, has just posted an article, http://www.newyorkmotorinsurance.com/blog/insurance-fraud-rising/, to its website that details how insurance fraud is on the rise in New York. In turn, the article notes, this is leading to expensive auto insurance rates for customers.
According to research and information that is included in the article, around 36% of the insurance claims filed in the state of New York are fraudulent. This epidemic of insurance fraud is currently estimated to cost tax payers over $1 billion per year. Jeff Ferguson, an assistant district attorney based in Brooklyn, has said that if something is not done soon to combat this serious issue, car insurance may become too expensive for most New Yorkers to afford.
The reason that this issue ends up hitting the pocketbooks of law abiding drivers is because in order to make up for the losses that happen in fraudulent insurance cases, auto insurance companies will typically raise their rates. Since providers look at where customers live when determining how much they will have to pay, those who live in the Empire State will end up paying for the crimes of others.
“Because of insurance fraud, New York City drivers are faced with some of the highest insurance rates in the nation,” the new article on http://www.newyorkmotorinsurance.com/ said, adding that in 2009, drivers in Brooklyn paid an average of $2,143 for their annual insurance premium.
“This is nearly three times higher than the national average of $785 as reported by the National Association of Insurance Commissions (NAIC) for 2009.”
In an effort to curb insurance fraud in the state of New York and bring prices back down to a more reasonable level, officials agree that new laws are needed. For example, a $279 million fraud scheme that was discovered last year by authorities inspired the New York senate to pass new insurance fraud measures that impose stiff penalties for anyone who takes part in this type of crime. Unfortunately, this legislation has been ineffective so far. Criminals have been very adept at circumventing the law and figuring out new ways to be dishonest and commit insurance fraud.
As the article on New York Motor Insurance pointed out, until law makers come up with effective ways to fight insurance fraud, rates will probably continue to rise. Drivers must be vigilant and take the time to search for ways to cut their insurance premiums as much as possible. The company’s website offers a free guide on how New Yorkers can lower their rates.
About New York Motor Insurance
New York Motor Insurance is a New York City based tech startup in the auto insurance field. Specializing in rate comparisons, New York Motor Insurance hopes to bring affordable auto insurance to all New Yorkers. For more information, or to get a free insurance quote, please visit http://www.newyorkmotorinsurance.com
New York Motor Insurance
154 Grand St
New York, NY 10013
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