Car Insurance Rates Addresses Reports of Fraudulent Claims

Sept. 19, 2011 - PRLog -- CarInsuranceRates.com, a site dedicated to distributing free quotes on auto insurance coverage, points out the flaws of the no-fault system and explains the skyrocketing cost of medical payments coverage in its latest news and editorial piece. The article discusses the recent indictments of a large, elaborate accident-staging ring run by twelve residents of Queens, New York.

“The accidents staged by this ring of con artists ended up costing the insurance companies close to $50,000. And this is just one group in one small part of the country. As our new piece points out, accident fraud cases like this one taken as a whole cost insurers millions of dollars in falsified medical payments claims. And that falls directly into the laps of consumers who end up paying more for the coverage they need,” said Nathan Ackerman, spokesman for Car Insurance Rates.

The group a dozen people involved in the Queens fraud ring would stage accidents and then either feign or embellish accident-related injuries in order to receive medical payments benefits. The indicted individuals also encouraged “real” accident victims to exaggerate their injuries so they could receive unnecessary medical treatment and pocket the cash.

“The point of articles like this one is to highlight the uncertain benefits of a no-fault system. Paradoxically, a structure that was put in place to save drivers’ money is now encouraging fraud and driving up car insurance rates. For unscrupulous policyholders, the promise of $50,000 or more in medical and lost-wages compensation is just too powerful of an incentive to defraud, and that needs to change,” explained Mr. Ackerman.

For more information, please visit http://www.carinsurancerates.com or call (888) 426-1093. Follow carinsurancerts on Twitter or "like" Car Insurance Rates on Facebook.

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