| Everyday honest people are paying more than | | | | government entity to report the activity, sue |
| they should for New York auto insurance due | | | | on behalf of the government (qui tam), and |
| to fraudulent claims made under the no-fault | | | | collect up to triple the defrauded amount. A |
| state insurance plan. These claims have | | | | person can earn a reward of up to 30% of the |
| raised policy costs hundreds of dollars by | | | | recovered amount. Qui tam claims resulted in |
| car insurance companies trying to recoup | | | | over $177 million dollars in rewards in 2007. |
| their losses. Honest consumers are left | | | | Since New York auto insurance companies need |
| footing the bill for criminal behavior. | | | | to be state licensed they may fall into this |
| | | | category. People are also encouraged to |
| Some of the criminals cause accidents on | | | | report fraud against New York auto insurance |
| purpose, file false accident claims or | | | | companies by calling 1 (800) 835 - 6422 or |
| exaggerate injury reports. Many times crooked | | | | writing to: |
| doctors or lawyers are also involved. The | | | | |
| insurance companies, in a rush to meet state | | | | Insurance Fraud Bureau |
| required deadlines for denying or paying | | | | |
| claims, often don't have time for a proper | | | | New York State Insurance Department |
| investigation. They have no choice but to pay | | | | |
| the claim. This costs millions each month. If | | | | 25 Beaver Street |
| the insurance companies didn't pass the | | | | |
| losses onto us, they would go out of | | | | New York, New York 10004 |
| business. We need insurance companies so we | | | | |
| pay the higher rates. | | | | New York auto insurance fraud civil penalties |
| | | | include $1,000 for falsifying auto insurance |
| Another less known type of fraud, but just as | | | | cards, $5,000 for filing a false claim plus |
| lucrative is the insurance broker fraud. Some | | | | the amount of the claim, and penalties, fines |
| brokers will set you up with a policy and | | | | and jail time for causing an accident on |
| take your money. Then one day you make a | | | | purpose. Fraud affects us all therefore we |
| claim and find out that the policy you paid | | | | all need to work together to stop false |
| for doesn't cover what the broker promised. | | | | claims or other criminal behavior. |
| Always get a copy of your policy and check it | | | | |
| to make sure all the coverages you pay for | | | | Separate summary: New York auto insurance |
| are listed and never pay in cash or to the | | | | companies have taken a big hit by criminals |
| individual broker. Always make out a check | | | | filing fraudulent claims. It gets harder and |
| the insurance agency or company. | | | | harder to obtain cheap car insurance because |
| | | | of these unscrupulous individuals. Be extra |
| In order to try and crack down on fraud, the | | | | cautious to try and avoid staged accidents |
| New York State Fraud Claims Act allows any | | | | and if you believe you have been a victim of |
| member of the general public with knowledge | | | | fraud, report it immediately to the Insurance |
| and evidence of fraudulent behavior against a | | | | Fraud Bureau. |