May 05, 2011
By: Bruce Berry
A recent report from the National Insurance Crime Bureau suggests a correlation between questionable auto insurance claims and the rise in claims for bodily or personal injury protection.
According to the NCIB's analysis, the volume of questionable insurance claims stemming from vehicle collisions increased 17 percent between 2009 and 2010. During that same time period, the incidence of bodily or personal injury protection claims climbed by 15 percent, a similar pace of growth compared to questionable claims. Though the agency stopped short of tying the two growth rates together directly, the report said the findings suggest fraudsters may be leaning on that coverage when looking to take advantage of their auto insurance policies.
"This corresponds with the increased level of vehicle-related insurance fraud activity NICB investigators are seeing in 'no-fault' insurance states like New York and Florida," said the report.
No-fault auto insurance exists in several states and allows motorists to recoup losses from their insurance company regardless of who was considered "at fault."
Regulators are working to crack down on insurance fraud. Florida lawmakers are considering legislation that would give auto insurance companies 90 days to consider suspicious claims before paying out for medical damages.
Related Articles:
- Teens admit to texting while driving despite risks May 08, 2012
- NY regulators propose new insurance rules to reduce fraud May 03, 2012
- More auto insurance shoppers willing to switch May 01, 2012
- Survey finds teens believe they are safe drivers despite distractions April 27, 2012
- Returning soldiers have higher accident risks April 24, 2012
