There are millions of vehicles on the road in the United States at any given time. Most drivers know that they should have auto insurance coverage on their vehicles. A majority of the states have made it mandatory to have up to date auto insurance coverage but some people do not do the right thing and they commit auto insurance fraud.
For example, some people have been committing fraud by using the same address to get multiple auto insurance policies. The reason that this was done is because the location where you park a car makes a significant determination as to the insurance premium that you will have to pay each month. One address was used 50 times by people committing fraud to get lower premium rates.
Politicians might crack down even harder on individuals who commit car insurance fraud. Some people that are convicted of the crime may even face 15 years in jail. It is important to remember that even embellishing your information on your auto insurance application is against the law. In some cases people who have committed auto insurance fraud have been denied insurance coverage through other insurance providers.
New York has had a hard time addressing this legal issue. In the last twelve months, more than 10,000 people lied on their car insurance applications. One specific serious offense was when criminals used an address in Pennsylvania to get 161 cars auto insurance coverage. People should be very angry about this because it is going to lead to higher auto insurance premiums for all. The latest estimates have found that more than 24 million dollars in auto insurance premiums were not able to be collected because of lies that were told by auto insurance applicants.
People who wish to report this type of fraud can call a toll free tip line in New York. It is important for the public to get involved because law enforcement often does not have the time or resources to look into these cases with auto insurance providers.
New York is considering charging these individuals with auto rate evasion which could give them a four year state prison sentence. People that falsify auto insurance documents would face a prison sentence of seven years and people that forge more than ten documents could receive fifteen years in prison.
These people need to be sent a message in order to help to protect the auto insurance pool and keep auto insurance rates consistent. The economy is doing badly right now but drivers need to be honest when they apply for insurance coverage. They may think that what they are doing is innocent and will not hurt anyone but it really does have serious ramifications for everyone that is involved.
Hopefully the state of New York can enforce these new stricter penalties for people that commit auto rate evasion and other crimes related to insurance fraud. Many people are struggling financially right now and do not deserve to have to pay higher auto insurance premiums due to someone else’s actions.
Source: SI Live