Auto Insurance Fraud A Felony
Filed under: Car Insurance News
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Auto insurance fraud is soon to become a felony in the state of New York. Legislators are working on harsher penalties for those submitting false claims and other fraudulent activity according to the article “New York Senate Passes Bill Making Auto Insurance Fraud a Felony” found on the US Insurance Corner website.
The New York Senate is hoping that passing harsher penalties against perpetrators will not only encourage less fraud but will ultimately lower costs of auto insurance quotes for everyone in the state. Fraud losses have to be made up somehow by insurers and unfortunately it ends up coming out of innocent, law-abiding customers.
Republican Senator James Seward sponsored the bill and on the Senate’s insurance committee as a chairman. He believes the new legislation offers a strong deterrent to those considering fraud against their auto insurance company. He also sees this bill improving highway safety and dropping auto insurance rates for everyone. Depending on the history of the perpetrator and the circumstances around the fraudulent activity, a person could face a class B, C or D felony which translates to much harsher punishment.
The bill targets those who stage accidents since that is one of the more egregious acts, but this is not the most common type of fraud. The State of New York Insurance Department says about 9 out of 10 fraud cases are related to no-fault injury claims.
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Posted on March 27th, 2011 by Elizabeth Martin
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