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6/24/2011 - Fraud impacts insurance rates

Officials say insurance fraud in New York significantly impacts rates.

Travel expenses for New York businesses got a little more expensive in February and March and officials believe it may be due to the prevalence of auto insurance fraud occurring in the state.

According to the New York Daily News, motorists' insurance premiums rose by 4 percent last year, increasing businesses' expenses in a state where the cost of living is already high.

But officials believe they can get costs under control by clamping down on faked car crashes, which has become rampant.

To do so, Brooklyn District attorney Charles Hynes and other elected officials are encouraging the state Legislature to make auto insurance fraud a felony. Hynes told the paper that the current penalties aren't harsh enough.

"There is nothing more frustrating than closing down a criminal 'medical mill' only to see the same players open one with a new name a few weeks later," said Hynes.

If you suspect insurance fraud, you may report it directly to Selective by calling our Fraud Hotline (877-862-2824). We will make every effort to maintain your confidentiality. You can also report insurance fraud to the National Insurance Crime Bureau (800-835-6422) or to the Coalition Against Insurance Fraud

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