The New York State Senate today passed three bills to combat auto insurance fraud, which costs New Yorkers more than $1 billion a year, as well as legislation that would impose stronger criminal penalties for staging auto accidents. Recent cases of auto insurance fraud have uncovered massive crime rings, including doctors, lawyers and scam artists who staged accidents and used New York's no-fault insurance program as their own giant state-sponsored, ATM machine.
We’ve all seen the ads promising to save us hundreds of dollars on our car insurance, but what if we could save a billion dollars?
It’s not as farfetched as you might think. New Yorkers pay 50% more for their auto insurance than drivers in other states and a driving force behind these higher premiums is fraud. It costs New Yorkers over $1 billion a year, but it doesn’t have to. That’s because the State Senate has passed 3 pieces of legislation to fight these unwarranted costs.
Unfortunately however, a hurdle remains before they can be fully implemented into law and for the savings to begin. That hurdle is the State Assembly. Despite having the bills on their desks for months, they have refused to act. It’s a mystery of inaction that regrettably impacts us all.