Post Date November 17, 2012 - The amount of Auto Insurance Fraud in the State of Pennsylvania has increased by over 10% so far in 2012. Insurance-related crime has seen a larger than normal spike within the first 10 months of this year than the previous years of 2011, 2010 and 2009. Auto insurance fraud is the leading type of insurance related crime in the United States and specifically the Keystone State. Auto insurance fraud also accounts for over two-thirds the criminal arrests and prosecutions related to auto insurance fraud in PA.
Auto insurance fraud on the rise in Pennsylvania
The IFPA Executive Director says in addition to auto insurance fraud, homeowners insurance fraud has also seen a “dramatic increase” as well. This is being followed by insurance in workers compensation, life and health insurance-related crimes which have seen an 18 percent increase in the same period of time. Filing charges agaist these people and prosecuting auto insurance fraud and other related crimes including other types of has resulted in over $3 million in restitution, $57,724 in fines, and over $100,000 in civil penalties collected from defendants. The number of insurance crime perpetrators arrested has also increased by 15 % compared to the first three quarters on 2011. The increase on the reported number of auto insurance fraud-related crimes shows Pennsylvania is very serious about stopping auto insurance fraud. Auto insurance Fraud hurts all insurance consumers in PA since insurance carriers must charge higher prices in order to recoup the amount lost paying illegitimate claims.
I encourage you to report any possible cases of auto insurance fraud to our office or law enforcement. The faster an investigtion is started, the faster a possible prosecution can commence. Fighting insurance fraud is a crime that everybody should take very, very seriously. Reporting auto insurance fraud is not only the responsibility of the law enforcement agencies, the insurance companies, but as well as you the consumers.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 206