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Posts Tagged ‘New York City’

More Drivers Scamming Insurance Companies With Rate Evasion

February 10th, 11

Drivers who live in expensive parts of New York like New York City and Buffalo are trying to save money on auto insurance by registering their vehicles out of state. But now lawmakers want to crack down on that. They call it “rate evasion” and according to TimesUnion.com, Senator Diane Savino calls it “an illegal and costly scam that reaches all corners of this state.”

Estimates show that rate evasion could cost New York state alone at least $1 million annually. It’s money they would have earned from registration fees and other costs. Last year there were $73 million in unpaid parking and traffic tickets in New York City from out-of-state vehicles. “This is an issue that is impacting people who do the right thing,” Sen. Jeff Klein told TimesUnion.com.

According to some auto insurance companies, this scam has become more common. They’ve seen a 50% jump in these cases since 2009. The reason it’s becoming more common is because insurance is expensive in New York. It’s the fourth most expensive state behind New Jersey, DC and Louisiana. Right now technology does not put states on the same page or make tracking down drivers easy. In fact New Jersey charges $12 to find a driver’s name and address.

Tags: offender, rate evasion, jump, New York City, recent requests, reason