New York Insurance

Allstate, the largest auto insurer in New York, said yesterday that it was increasing their rates an average of 10.5 per cent in the State of New York, highlights the growing problem of fraud rights auto insurance.

The increase is the average of 11.8 per cent in the five municipalities in New York City and Westchester, Rockland, Nassau and Suffolk Counties, indicate that auto insurance rates and fraud is a hot topic for legislative l ‘ State, yesterday convened. Elsewhere, New York State, Allstate customer pays more than 7.3 per cent for auto insurance.

The increases were approved by the regulatory authorities state, be immediately and effectively to new customers February 17 for former clients.

Although the growth of New York City and nearby boroughs was more than four times the average price increase for insurers in the state in 2000, the latest year for which statistics are available, regulators d State said they were not surprised.

”That’s exactly what we knew was,’’said Joanna Rose, a spokesman for the New York State Department of Insurance. ”We need real reform to fight against fraud and abuse.”

New York already has the second most expensive car insurance in this country, with an average price of $ 943 per car. But officials fear that New York is perhaps soon exceed the New Jersey’s most expensive state for auto insurance for an average of $ 1,043 per car. Car insurance has become a rancorous political problem in New Jersey and George E. Dir Pataki do not want a big exhibition in New York.

Last year, he and Gregory Serio, Superintendent of Insurance, introduced a number of changes to legislators, to reduce tax evasion. Many legislators recognize that fraud as a serious problem, but they were unable to act, a bill adjourning. Some legislators proposed a special meeting to deal with auto insurance fraud. But finally, there was no special session.

State Farm Insurance, the third insurer in the state increases its rates by 7.4 percent on average above the level of November. And the regulatory authorities said yesterday that they expect other insurers raise their prices.

On the other side of the country, auto insurance have increased an average of 6 per cent last year, according to Robert Hartwig, chief economist for the insurance industry Information Institute, a trade group in New York Because the cost of medical care and repair automobiles has increased. The average increase from the previous year was 3 percent.

Nowhere in the country, auto insurance fraud seriously, “said Hartwig. ”New York, auto insurance fraud capital of the USA,”he said. ”It is worse in New York City. But Buffalo, Rochester, Syracuse and Albany have shown the same problem.”

Mr. Hartwig said that the cost to insurers after New York increased by 28.5 per cent of fraud during the year, compared to an average of 3.8 percent across the country. Colorado, 18 percent with higher charges for claims, belongs to a handful of other countries, including Florida, are causing severe dizziness fraudulent claims.

Most centres of fraud on the cost of medical treatment. In a common scheme, organized groups auto scene of several accidents people in the cars. The pilot file an accident report with the police to document the incident. Then, all passengers are usually not difficult to begin treatment with doctors, chiropractors, radiologists and others, many of whom are often part of the group of fraud. Organize lawyers are often groups and insurers transport, against payment of claims.

After New York’s no-fault auto insurance system, insurers offer up to $ 50000 coverage with virtually no questions. Currently, people involved in the treatment of failures may earn up to six months before their insurer. Insurers say that leaves much room for fraud. , In collaboration with the governor, campaigns to reduce the period of 45 days. But they were of legal proceedings against some lawyers and health professionals.