November 28, 2011
By: Carrie Van Brunt-Wiley
A recent study finds that injury losses claimed by drivers involved in auto accidents in the New York City area have risen above and beyond the growing cost of care.
Personal injury protection claims for medical bills, lost pay and other auto insurance losses in the city have spiked 70 percent over the past 10 years, compared to just a 49 percent increase in medical costs, according to the Insurance Research Council.
The group says that the average loss in PIP claims in New York City was more than $15,000, compared with less than $7,000 for the rest of the state.
"This report further details the problem of claim abuse in New York, especially unscrupulous medical providers who overtreat and overcharge claimants and their insurers," said Elizabeth Sprinkel, senior vice president of the IRC. "The costs of combating these fraudulent activities are further driving up the price of insurance for all consumers in the state."
The IRC says roughly 23 percent of claims reviewed as part of the study appeared to involve some type of fraud. Claims from New York City were four times as likely to arouse fraud suspicions.
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