Intentionally Causing a Vehicle Collision

New York State Senate recently passed a bill which would make it a felony to intentionally cause a vehicle collision. It is designed to be a deterrent for the criminals who prey on innocent motorists in an effort to benefit from insurance fraud.

Auto insurance fraud in New York cost drivers in the state more than $240 million last year. New York ranks as one of the most expensive states in the nation for auto insurance due in large part to rampant insurance fraud.

No-fault Auto Insurance Fraud

While no-fault auto insurance fraud is a statewide problem, New York City is the epicenter of this activity, says The Property Casualty Insurers Association of America (PCI). For example, drivers in Brooklyn pay 185% more than the statewide average for no-fault coverage and in the Bronx, the situation is even more severe with drivers paying 272% more than the statewide average for no-fault coverage.

The reform measures include:

  • Implementing tougher penalties on criminals who cheat the no-fault system.
    Modifying the 30-day rule in order to allow for more thorough investigations of suspicious claims.
  • Combating excessive and unnecessary medical charges.
  • Decertifying medical providers who commit insurance fraud.
  • Encouraging fast and fair settlements by requiring medical providers to submit disputed no-fault claims to an arbitrator.


Read more: New Yorkers stand against insurance fraud