Insurance Fraud Is On The Rise in New York

Auto insurance fraud in New York increased almost 9 percent between 2008 and 2009, according to a recent state report. The report, released in early March by the New York State Insurance Fraud Bureau, is released annually and tracks fraud figures across all lines of insurance. The most recent report found that no-fault auto insurance fraud had accounted for 54 percent of all fraud reports received by the bureau in 2009.

In all, the bureau received 13,433 suspected fraudulent no-fault claims in 2009, up from 12,339 in 2008.

As a result of such fraudulent claims, auto insurance rates for New York drivers have steadily increased.

In response to the sharp increase in fraudulent no-fault claims, the New York State Insurance Department has stepped up efforts to combat no-fault fraud. One measure includes proposed revisions to Regulation 68, which implements the no-fault statute.

In most cases, no-fault fraud is committed by organized crime groups that operate corrupt medical clinics submitting fraudulent claims for treatment that was either not performed or not necessary.

Unfortunately, innocent New York drivers are footing the bill for this fraud through higher auto insurance premiums.

Insurance Tip #1: Protect Your Business with Liability Insurance

Your business is the cornerstone of your livelihood. When business is good, you prosper. When business is bad, you lose money.
This is why it is important for New York and Connecticut business owners to protect their company with strong New York liability insurance and Connecticut liability insurance.

Business liability insurance protects your business from potential lawsuits filed by individuals claiming to have been injured on your property, facility, etc. These claims can affect the name and reputation of a business, even when they are unfounded. By purchasing liability insurance your business is protected from dangerous or defective property claims, slip and fall suits, construction injuries and other types of accidents on commercial properties.

As a business owner, your time is valuable and although finding the best business insurance should be your top priority, you probably can’t afford to waste time searching for the best plan.

Thankfully, the business insurance experts at CTNY Insurance Only are here to help. Our qualified insurance professionals will shop around to find you the best rates possible on New York business insurance and Connecticut business insurance, so you don’t have to.

Auto Insurance Company Sends Refunds to Customers Over 2006 Rate Hike

According to the New York State Insurance Department, Clarendon National Insurance Company has refunded approximately $992,000 to its customers and paid $360,000 in fines after it was determined that they overcharged auto insurance policyholders when it instituted a 30 percent rate hike against 1,227 of its New York automobile insurance customers.

Most of those policyholders were New York City and Long Island insurance customers.

Although the Clarendon has yet to comment on the situation, the fine and the refunds were the result of a department review of the company, conducted after it requested permission to withdraw from the automobile insurance market in New York State.

New York and Connecticut residents who want to save money on car insurance are encouraged to shop various trusted insurance carriers. Unfortunately, most people don’t have the time to shop for the best auto insurance quotes available. That’s why using a third-party company to search for free no-obligation quotes is a safe and easy way to go.