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According to the Rochester Homepage in New York, lawmakers in the state are working to crack down on fraudulent no-fault car insurance claims. This is good news for car insurance companies, especially those dealing with fraud related to no-fault car insurance claims. After a car accident, no-fault insurance allows drivers to be paid out even though the blame for the car accident is not placed on either driver. Unfortunately, New York state lawmakers say that there are a lot of fraudulent claims being paid out and that New Yorkers are paying millions of dollars a year for these fraudulent no-fault claims.
Some criminals actually create car accidents so that they can file a no-fault insurance claim with their car insurer. Insurance companies like Infinity auto insurance are obviously not happy about that and will be pleased to see lawmakers help cut down on false claims. Lawmakers have already made it a felony to cause a car accident intentionally, the first step in cutting out this fraud. Even though there aren’t that many people filing fraudulent claims, it really does effect everyone because it causes car insurance rates to increase. Lawmakers hope to find a way to cut down on this expensive fraud very soon.


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