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Insurance Fraud Bill Passes Assembly

Assemblywoman Aileen Gunther is tired of high costing insurance, and she knows what is to blame for it and it is those attempting to perpetrate fraud on the insurance companies. She says that fraud is one of the biggest reasons that car insurance has skyrocketed in New York, and she wants something done about it.

She is working to get legislation, that just passed the Assembly, that would “enhance consumer protection” by making insurance companies responsible for monitoring their claims for fraud. She says that by people saying that where there car is or how they drive it changes the way insurance is rated, and she wants people to have to be responsible for their own honesty when representing their auto behaviors.

She says that auto insurance in New York State is higher than the more rural areas, because of the number of accidents that occur in higher populated areas. She says this is to be expected, so it is an appropriate difference in the insurance. Her problem is not with these rates however, it is in the more rural areas that the problem seems to lie.

She says that those in the rural areas that are misrepresenting things, are causing those rural areas to have higher rates than they should. She said that the insurance companies have to check to see where the cars are garaged, for some people are saying that they are garaging their cars in rural areas, when in fact they are not. The Senate Insurance Committee will take a look at the bill next, and they will decide whether or not to pass it on.

 

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