New action is punishment for fraud in the automobile registry
New York and other out-of-staters try to beat you high automobile insurance rates, wrongly, registering their cars in New Jersey face fines is steep - up to 15000 $ - To identify a law signed today by Dir Jim Florio.
The new law allows a violation of the State Fraud Prevention Act, for each Out-of-State motorists wrongly on his legal residence in the demand for automobile insurance. First offender may be fined, $ 5000, a second offensive is subject to a fine of $ 10000, and the third and following offences, $ 15000
“People in this type of fraud to save money while New Jersey’s auto insurance lower prices, so the best way to eliminate this type of fraud is the elimination of economic incentives violated fines” , “Said Governor Florio signed the law in Newark today.
Although New Jersey residents have complained of excessively high rates of insurance, they are still significantly lower than the compensation within a large claim areas such as New York and Philadelphia, where investigators say the rate of tax evasion is the most often. Price Contrast
Prices in New Jersey, according to the division of insurance, currently averaging about $ 1000 per year, but the assurance of a car in New York or Philadelphia will cost over $ 3000 per year due to the high level of accidents and the rate of theft.
The main method of circumventing high tariffs in urban areas, registering a car in New Jersey with an address of an apartment in Jersey Shore, mediation or New Jersey parents to use their addresses, especially in rural or suburban areas, which are lower.
Mr. Florio said the circumvention of such costs New Jersey driver about $ 100 per year in premiums added to the requirements of the policy against the use of fraudulent documents New Jersey addresses.
The magnitude of the problem, it was proposed last May 20, if investigators New Jersey Insurance Fraud Division in Philadelphia and several districts of New York at the list and a photograph of vehicles with New Jersey plates, between 6 am and 9:30 in the morning. She recorded a total of 1147 plates from New Jersey, 663 in New York City and 484 in Philadelphia, a lot of expensive luxury cars. The differences in insurance rates is the biggest in cars more expensive because of rising costs of repair or replacement.
According to investigators will check the registration of the vehicle against other records - tax roles, credit reports, post records, school enrolment, benefits telephone bills lists of directories, employment records, insurance applications, registration of voters and records of companies leasing - Determine the true owner of the residence, more than 800 were actually living in New Jersey.
But without a special status, especially those of fraudulent registration process a crime, interest rates were fraudsters, subject only to civil remedies, if files an application for insurance. The normal course of action, if a fraudulent registration of the insurer discovers a general rule, an application was filed, was the resignation of the policy and refund of the premium.
Rate fraudsters were no criminal law could, in theory, for theft by deception - First of lower rates lies about the address - but the monitoring and proof has been difficult, and during the year 1989, the latest year for which statistics were only 23 people were charged of theft by deception, in such cases. 13,000 cases studied
But the department of the fight against fraud actually received more than 30000 complaints of tax evasion rate between 1988 and 1990, investigators began to focus on the problem. In 1990, about 13000 cases were examined, and almost 40 per cent rate of fraudsters involved, had said.
Investigators have said 95 per cent of cases involved Out-of-State residents fraudulent claims, New Jersey addresses.
New Jersey insurance officials, the new law there would be insurance companies and criminal prosecution authorities broader authority to physically inspect vehicles for the applicants have requested insurance.
In some cases, the insured person is easy to use, and a vehicle that is not present, is a policy, then the reports of car theft which does not exist and builds up in politics. Some insurance companies refer this type of fraud as “Phantom of the automobile.
Related Articles
Auto insurance fraud considerably
Efforts to fight against fraud in auto insurance in New York State appear to be working with reports of fraud to 17 per cent last year, according to the New York Alliance Against Insurance Fraud. Citing statistics from the information industry funded by the Institute of group insurance, the insurer said
Automobile insurance is now cheaper in many countries
Insurance premiums have fallen for millions of drivers across America and is expected to keep falling - or at least maintain constant - in the coming years is very profitable, insurers increasing pressure from competitors, regulators and support. For over 20 years, prices for car insurance in only one direction. The
DeWitt Stern insurance brokerage opens SF office
DeWitt The star of the group, a fast-growing insurance brokerage and consulting, which is headquartered in New York, is one of the four positions of people from outside San Francisco, under the direction of newcomer Marilyn Quinlan, officials , said late Thursday. Quinlan, vice president and director in the field of
Facing Rise fat in automobile insurance, Albany Scrambles for a solution
With New York on track to exceed the New Jersey as the country most dear to the nation-state for the automatic configuration insurance, politicians in Albany are encryption system to find it takes legislation, what could become an explosive topic in elections next year. Most insurance companies of State, the big
Small Business insurance for your home-based Business
A thief steals your computer. The water flooded the cave, where business files are stored. The carrier provides a range of suppliers is a casualty, after skating in your path. These are the dangers of home-based business can cope - unfortunate events, at least can lead to a financial burden for
Reduce your car insurance costs
NEW YORK - Possession of a car these days is becoming increasingly expensive. Driving a car costs about $ 7834 a year after the Automobile Association of America. We are not talking only about gas prices higher. The driver of insurance costs on average $ 939 per year. Under the current
Berkshire Hathaway municipalities insurer earns top rating S & P
NEW YORK (Reuters) - Aire trillion Warren Buffett nine fidelity bond, municipal corporations, on Friday won the race "AAA" rating from Standard & Poor's Ratings Services, the city of Venture almost $ 1 billion ' surplus. Berkshire Hathaway Insurance Corp (BRKa.N: Quote, Profile, Research) has been granted licenses to 48 states
Why insurance is high and difficult to obtain
The USA is a risky place, as it was a few years ago. Racial disorders, drug addiction, Campus chaos and rising crime have been added, not only social risks, but also economic costs of daily life. If a house is a school burglarized or vandalized, almost everyone to pay a
The auto insurer agree that refunds
More than one million New York, are expected to obtain a refund of $ 225 for each car five insurance companies which are not handed over to pay for car security and anti - theft devices, a solution of last week with the New York State Attorney General's Office. The five
New Jersey refuted in its motor insurance losses
Direction: The assurance of the economy, the debt of New Jersey's Insurance Commissioner for nearly 1 billion dollars in losses by État's Joint Underwriting Association on policy motorists, studies on the basis of the Commissioner and its costs more different conclusions. The insurance companies, the debt of New Jersey's Insurance Commissioner