OAI: New Study Hints at Problems in NY No-Fault Auto Insurance System
A recent study from the Insurance Research Council shows costs for treating auto accident victims in New York have outpaced the rate of inflation for the cost of medical treatments.
(EMAILWIRE.COM, November 30, 2011 ) New York, NY -- A recent Insurance Research Council (IRC) study showing injury claims filed by New York accident victims have skyrocketed in recent years underscores how vulnerable states with no-fault coverage systems are to unscrupulous billing, misrepresentation, and other problems, according to Online Auto Insurance (OAI).
Industry experts say those dubious practices can inflate the auto insurance quotes Florida, New York and other state residents see when shopping for coverage. A dozen states, including the Empire and Sunshine states, have no-fault systems under which policyholders’ injury claims are paid by their own insurer and lawsuits for emotional suffering and other noneconomic damages are restricted.
According to the IRC report, staged accidents and exaggeration of injuries by policyholders—along with inflated billing by chiropractors and other medical providers—are to blame.
And most of those questionable claims come from New York City, where more than a third of all claims appear to involve abuse, compared with a statewide average of less than 9 percent. Insurer losses for medical expenses and other costs in the Big Apple are more than double those for the rest of the state and have increased by more than two-thirds in the past decade.
The Insurance Information Institute (III) says New York’s no-fault system is at least partly to blame.
The system was created in the 1970s in order to limit accident lawsuits and slow increases in coverage costs. Motorists are entitled to up to at least $50,000 in medical and other benefits under the no-fault part of their personal injury protection (PIP) policies, and those with losses that exceed that amount may take their cases to court.
But according to III, the system has been spoiled by dishonest lawyers, health care providers and policyholders.
Experts at III and other organizations say New York state faces many of the same problems as Florida, where lawmakers and insurers say reforms are needed to prevent coverage costs and premiums from spiraling out of control.
Source: http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-203bi.pdf
Staged accidents and excessive or unnecessary medical treatment will add roughly $1 billion to the costs of Florida’s no-fault system this year, III officials say.
To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/florida/ where they will find informative resource pages and a helpful rate-comparison generator that can help consumers quickly evaluate their coverage options.
About OAI:
OAI provides news about the coverage industry, reviews on some of the country's most prominent insurers and rate-comparison services that give consumers a full view of their pricing and carrier options.
Industry experts say those dubious practices can inflate the auto insurance quotes Florida, New York and other state residents see when shopping for coverage. A dozen states, including the Empire and Sunshine states, have no-fault systems under which policyholders’ injury claims are paid by their own insurer and lawsuits for emotional suffering and other noneconomic damages are restricted.
According to the IRC report, staged accidents and exaggeration of injuries by policyholders—along with inflated billing by chiropractors and other medical providers—are to blame.
And most of those questionable claims come from New York City, where more than a third of all claims appear to involve abuse, compared with a statewide average of less than 9 percent. Insurer losses for medical expenses and other costs in the Big Apple are more than double those for the rest of the state and have increased by more than two-thirds in the past decade.
The Insurance Information Institute (III) says New York’s no-fault system is at least partly to blame.
The system was created in the 1970s in order to limit accident lawsuits and slow increases in coverage costs. Motorists are entitled to up to at least $50,000 in medical and other benefits under the no-fault part of their personal injury protection (PIP) policies, and those with losses that exceed that amount may take their cases to court.
But according to III, the system has been spoiled by dishonest lawyers, health care providers and policyholders.
Experts at III and other organizations say New York state faces many of the same problems as Florida, where lawmakers and insurers say reforms are needed to prevent coverage costs and premiums from spiraling out of control.
Source: http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-203bi.pdf
Staged accidents and excessive or unnecessary medical treatment will add roughly $1 billion to the costs of Florida’s no-fault system this year, III officials say.
To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/florida/ where they will find informative resource pages and a helpful rate-comparison generator that can help consumers quickly evaluate their coverage options.
About OAI:
OAI provides news about the coverage industry, reviews on some of the country's most prominent insurers and rate-comparison services that give consumers a full view of their pricing and carrier options.
Contact Information:
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-912-1855
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-912-1855
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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