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Auto Insurance In Pennsylvania Increases As Fraud Spikes

PA Insurance FraudPost Date February 9, 2012 - The Pennsylvania Insurance Fraud Prevention Authority (IFPA) had reported recently that the number of fraud cases which effected auto insurance in Pennsylvania increased last year, hitting a new yearly high.  In 2012, there are over 3000 cases of insurance fraud covering different lines of insurance including auto insurance in Pennsylvania.  Fraud for auto insurance in Pennsylvania  is 3% higher  in 2012 compared to 2011 that only had 3,100 cases. Most of the reported insurance fraud was referred to by insurance companies, and the rest are from consumers and state agencies.

Auto Insurance In Pennsylvania under the claims fraud microscope

Good news though is the number of fraud cases for auto insurance in Pennsylvania had a slight decline of 2 percent, from 1,600 cases in 2011 to only 1,549 last year. However, insurance fraud that involved motor vehicles is still top on the list. The second highest number of insurance fraud cases in the state belongs to worker’s compensation with 392 cases, followed by homeowners with 388 cases. Pennsylvania homeowners insurance fraud showed an alarming increase of 33 percent last year.

Next to homeowners is healthcare with 351 cases then followed by life and commercial. Such cases were considered to be “opened investigations”. The campaign against Pennsylvania insurance fraud led to the prosecution of 394 cases and the arrest of 423 individuals.

Fraud cases for auto insurance in Pennsylvania made up of for all the staged car accidents and false filings of claims for injuries. Some cases also involved reporting a vehicle to be stolen when it was actually not, falsified claims that declares the accident to have transpired when the insurance coverage is in effect when it is not. Some fraudsters also files false claims for damages to a vehicle that had already existed even before the insurance policy had been active. The public is being reminded fraud cases auto insurance in Pennsylvania is being considered as a serious crime, a felony that can have you end up in jail for seven years and face thousands of dollars in fines. Not to mention the huge legal costs.


Michael E. Dortch
President &  Senior Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206