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