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New York lawmakers on the hunt for rate evaders

Posted On Tue, February 8, 2011

New York state officials have noticed a troubling trend among motorists, and as a result, lawmakers are cracking down.

According to the Albany Times Union, many New Yorkers are engaging in a practice called "rate evasion," which is when a motorist insures their car in a state where insurance rates are cheaper to avoid paying high premiums. Local representatives tell the paper that the practice hurts New Yorkers in two ways: it robs the state of approximately $1 million annually and leads to premium hikes on New York motorists' policies.

The paper says the state senate's independent democratic conference have released a series of reports that addresses what lawmakers and officials can do to discourage the practice. One idea is to offer rewards to people whose tips lead to the successful prosecution of a rate evader.

It's not known when, or if, the legislation will be considered by the state's house or senate.

It seems people will stop at nothing to avoid paying high auto insurance premiums, and ironically, it is illegal activity like this that's often responsible for increasing rates among insurance providers.

 

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