Auto insurance news :New York Cost of No fault is rising.
Eben Pagan (New York): My auto insurance policy is going to be renewed by the end of this month and I live in New York. Can you please tell me about No fault car insurance in New York?
Response: Eben, I know you will find this odd, but the best way to get the best auto insurance rates is to compare auto insurance quote online and am sure you get the best deals. Online auto insurance is competitive and they offer you the latest discounts and best rates since they know that there are already a couple of insurers offering their rates on the same page.
Let me shate another news with you which you might have read regarding No fault car insurance in New York.
New York’s auto insurers saw their typical no-fault payment for the medical care of accident victims rise by 56 percent to $8,748 per claim in the second quarter of 2009. This represents a dramatic increase from late 2004, when the average no-fault payment stood at $5,615 per claim, according to an Insurance Information Institute (I.I.I.) analysis.
The insurance industry, the New York State Insurance Department’s (NYSID) Frauds Bureau, the National Insurance Crime Bureau and law enforcement agencies continue to investigate suspicious claims vigorously, according to Dr. Robert Hartwig, the I.I.I. president and an economist. Yet loopholes in the no-fault system make it particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.
“In less than five years, New York’s auto insurers have seen an extraordinary 56 percent increase in the average cost of no-fault claims, to a great extent the result of abuse and, sometimes, outright fraud in the system,”
“The costs of fraud and abuse of the state’s no-fault system ultimately are borne by New York’s honest policyholders. New York’s no-fault claim costs are now the second highest in the country and are 111 percent higher than the U.S. average of $4,152.”
The reason for letting you know all these details is to explain why the auto insurance rates are likely to rise. This is because the insurance companies base their auto insurance rates on their expenses and no fault claims expenses are a part of the expenses which all the insurance companies have to share and pay for.
The insurance companies offer a higher discount online since they save their operating cost. When you compare car insurance quote online make sure that you are also comparing your coverages and the discounts offered. I am sure you will find a good quote here.
Thanks.
Kamlesh
Tagged with: Accident Victims • Auto Insurance Policy • Auto Insurance Quote • Auto Insurance Quote Online • Auto Insurance Rates • Auto Insurers • Eben Pagan • Fault System • Frauds Bureau • Insurance Crime Bureau • Insurance Information Institute • Insurance News • Insurance Quote Online • Law Enforcement Agencies • National Insurance Crime Bureau • New York State Insurance • New York State Insurance Department • Nysid • Outright Fraud • State Insurance Department • York State Insurance
Filed under: Effect on Auto Rating • Latest news – Auto Insurance
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