Fraud is a "Crisis" in New York

 
 
According to Robert Hartwig, the president of the Insurance Information Institute, the no fault auto insurance system has done nothing but bring fraud to the state. Hartwig argues that people are taking advantage of the system and that it has become a haven for auto insurance fraud. He says that this fraud has reached “epidemic” levels in the state and wants to see something done about it.
 
Hartwig argues that the idea behind the auto insurance law was supposed to make the claims process easier, which in turn would have allowed the auto insurance companies to save money – savings which should have been passed onto consumers. However, rather than having that desired effect, the law is costing their drivers millions of dollars in excess auto insurance payments because there are so many people exploiting the system. He said that they are at a “crisis” level with the number of people that have been filing auto insurance claims for these no fault accidents.
 
According to him, those states that have these no fault auto insurance laws on their books have a higher percentage of claims that are fraudulent. He said that 12 states have the auto insurance law, also known as Personal Injury Protection, as well as Puerto Rico, and that those states are showing higher incidents of auto insurance fraud and “more than one in three appeared to be inflated” when it comes to claims. Downstate New York seems to be a haven for these no fault auto insurance claims that are fraudulent as they have a higher incidence rate there than anywhere else.





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