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Medical claims from accidents cited for insurance increasesPosted On Tue, November 2, 2010
Traffic violations and car accidents are a couple of common incidents that can cause auto insurance premiums to rise. Where a vehicle is housed and how frequently it is driven may also be used to determine rates.
The Property Casualty Insurers Association of America and the Fraud Costs New York Coalition conducted a study which revealed that medical claims from car accidents in New York could also be driving up rates. Furthermore, the study revealed that claims in the state increased just over 60 percent since 2004.
PCI assistant vice president Kristina Baldwin says medical fraud is fueling rate hikes.
"Unscrupulous medical providers are taking advantage of New York's automobile insurance system by inflating charges, submitting bills for procedures that were never performed, billing for excessive or unnecessary treatments," says Baldwin. "Unless the state legislature overhauls the system to curb the fraud, costs will continue to escalate."
Not all insurers have been accused of wrongdoing. The New York Department of Insurance recently ranked auto insurance companies according to complaints. Nationwide Mutual Insurance had the highest ranking in the state.
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