"While politicians talk about housing costs and the high price of groceries, there's another affordability crisis squeezing New York City families soaring auto insurance rates. Behind these sky-high premiums lies a web of scams costing everyone money. From fake crashes on neighborhood streets to phony medical bills, crime rings are gaming New York's insurance system and working families are paying the price."
"For many households, monthly car insurance now rivals rent or mortgage payments as a major strain on family budgets. According to Bankrate, New York drivers now pay about $4,031 yearly for full coverage almost double the national average of $2,679. Add this to rising housing costs and healthcare expenses, and it's another burden making the city less affordable for working families."
"The Scams The scams are clever. In one trick called swoop and squat, crooks work together to force innocent drivers into rear-end crashes. Another common play involves shady medical clinics billing for treatments that never happened. Still another is a driver and a body shop worker agreeing to inflate the auto damage claim and share the profit. Last June, prosecutors caught a group of clinics and lawyers who stole $40 million through fake claims."
New York City drivers face sharply higher auto insurance premiums, averaging about $4,031 per year for full coverage—nearly double the national average. Organized fraud schemes such as staged collisions, fraudulent medical billing by clinics, and inflated repair claims are inflating overall costs. State no-fault rules that require automatic payment for injury claims up to $50,000 within 30 days create rapid-payout incentives that criminals exploit. Prosecutors uncovered cases where clinics and lawyers stole tens of millions through fake claims. The FBI estimates fraud adds $400 to $700 to annual insurance costs per family, compounding affordability pressures.
Read at www.amny.com
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