In a shocking incident, Jaime Antonio Tavares acquired a broken hand to try and get coverage for his medical bills just after stating on September 14 after the crash that he wasn’t injured.

Tavares claimed $5000 for his mustang after the collision and also an extra $1500 for a car that was rental from liberty mutual. After the company paid his bills, they grew suspicious when they analyzed his accident that didn’t happen the way he said it did. Later, the company denied paying for his claims and shifted the case to the insurance fraud bureau of Massachusetts.

The 36 year old of 24 Belmont Street, Lawrence is the recent person who is charged with these bogus claims by the insurance fraud task force.

The detective of Lawrence police, Sergeant Michel Simard said that he must have broken his hand after hitting something or someone. This detective is the lead who was assigned to this criminal unit.

He said that it was always based that he hit something or someone which resulted in breaking his hand.

Tavares ex girlfriend told the task force that on the night when the accident happened, he walked out of the club completely drunk because he saw her dancing with another man and that made him angry.

She told them that the next day she found some damages on the mustang that she hadn’t seen before.

Tavares claimed that when he was driving his mustang on riverside drive, a black Acura emerged from Marble Street; he couldn’t control his steering and then crashed into this car. But before he could get any sort of information, the driver fled. When he told liberty manual the next day, he never said anything about being hurt. He reportedly went to a hospital after eight days with a fracture in his left hand.

After analysis was done on the reconstruction of the accident, it was found that he hit a still car, maybe parked but definitely not moving.

Tavares defended himself saying that he didn’t report the injury as he didn’t know that his hand was broken and he didn’t feel that much pain.

The doctor who examined Tavares’ medical record of his left hand said that he was surprised that Tavares waited for so long as the fracture pains are unbearable.

Tavares was arrested touching the number of frauds to 423 ever since the crackdown by the task force began.

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Many consumers believe the insurance rates they are paying are very high and in some cases are beyond the budget of many families. Auto insurance is an essential for road vehicles. The younger generation of working class people who are still stepping stones to their success find the cost of insurance very high.

Most consumers below the age on 25 have had complaints with the cost of these policies whereas more well-off consumers have not done so. Experts suggest that consumers must search for the right auto insurance policy to suit their needs and preference. Insurance policies are available from different companies and each policy has its unique coverage scheme for consumers.

All insurance policies are given insurance rates based on various factor. Car insurance also has coverage determined in a similar manner.

Consumers who have driving records which show them to be good, safe drivers have discounts and offer lower coverage as the risk of injury is lower among these drivers. Drivers who have been prone to damage and accidents and make claims often are subjected to higher coverage with a higher monthly coverage rate.

Insurance companies carefully examine a persons driving history before offering him/her insurance and deciding on the insurance rate the person will be covered by. Nationwide and GEICO have low insurance coverage prices and are more suitable for middle class families.

Websites are now popping up with information on different Insurance companies with different auto insurance policies and different auto insurance coverage rates. These companies evaluate consumers based on their history has drivers and make conclusions on insurance coverage. Experts suggest that consumers thoroughly search the market for insurance policies which suit their fancy before investing in unnecessary expensive insurance.

Progressive.com is one such website offering information to consumers about auto insurance policies and coverage rates in the same site. Consumers can also go to specific websites maintained by each company to get a clearer picture on the coverage the insurance policy offers. Consumers are encouraged to be well informed on the insurance policies of different companies and the prices they charge before making decisions on their coverage plan.

Auto insurance is an essential to every vehicle owner on today’s roads as the large number of vehicles on the road increase the risk of accident. College students cannot afford high insurance coverage rates and thus in many cases adopt Nationwide or GEICO insurance policies to suit their budget.

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As the recession in the US has brought about financial difficulties to millions of its residents, it is significant to retain existing customers.

Customer retention is absolutely important for those insurance agencies that have long term profit goals says the report given by JD power and associates.

The report showed that 30% of the households who earned less than $50,000 opted for new insurance carriers in the past year and almost 45% of the customers changed their carriers. And 26% of the households, those that earned more than $100,000 opted to buy new carriers leaving just 31% of them actually switching!

As 90% of the customers stayed back with their original carriers in the past year, those families that are more affected due to recession are a big challenge to retain for the insurers. Some of the insurers have somehow managed to increase the number of their customers in this difficult economic environment; this comes at the cost of other insurers of the auto insurance market in the US.

Amongst those customers who bring together many insurance products, the rates for retention is high shows the report.

The average rates for retention is 95%, those who bring together auto and home policies with the original carrier and it rates 92% for those who bring rental and auto policies together. And the customers who use just one policy at a time get average rates of 83% and 85% for those who don’t combine their auto and home insurances together.

Improving their retention by at least a percent for any of the largest us insurers can generate millions of dollars over the time period, so the slight differences in the rates of retention will have a big impact after a period of time. Innovating policies and satisfying customers would bring about huge incentives for the carriers.

The report shows that many variances are found between the various groups of demographic groups.

Different lifestyles and needs for insurance can be indicated through the differences shown in demographic groups. To retain customers it is important to tailor the products provided based on the different demographics of people instead of keeping just on size for all says bowler, the senior officer of JD power. More than 30 insurance carriers are evaluated but the surveys of the personal insurance retention report that researches on 275,000 customers holding auto insurance. Even all state, farmers, American families, progressive, state farm etc. are being evaluated.

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A total of 24 individuals have been reported to be charged with interstate auto insurance fraud. According to reports, 17 of them are New York citizens, 6 are from New Jersey, and 1 is a driver from Pennsylvania. Charges have been filed against the unnamed individuals for committing car insurance fraud and other charges of insurance felony for falsely identifying themselves as Pennsylvania drivers in an attempt to receive lower premium rates on auto policies.

Each of the 24 defendants are facing charges including one count of auto insurance fraud and one count of false application for registration or certificate of title. Both offenses are punishable by both years of imprisonment and a fine ranging from $10,000 to $15,000. Reports say that the defendants may be facing more charges that are yet to be finalized. Preliminary hearings for the defendants are set anytime from January to February next year. Members of the prosecution team for the scheduled hearings include Attorney General Insurance Fraud Section Deputy Attorney General Jennifer B. Peterson and Senior Deputy Attorney General Mark A. Bellavia.

Insurance expert and Pennsylvania Attorney General Tom Corbett identified the fraud committed as a form of rate evasion. Corbett described the practice as a scheme of out-of-state car owners who provide fraudulent documents to the Pennsylvania Department of Transportation in order to get information regarding PA vehicle registration records or drivers’ licenses. After getting what they want, out-of-state fraudsters will then use the information to get cheap rates for Pennsylvania car insurance policies to be used for their automobiles. When asked regarding the damages done by scams like this to Pennsylvania’s insurance industry, Corbett said that the genuine residents pay an additional amount, estimated to be ranging from $12 to $15 million each year due to premium rate hikes.

Atty. Gen. Corbett said in an interview that drivers from New Jersey or New York can save approximately $1,000 to $4,000 worth of car insurance costs per year by falsely claiming to be residents of Pennsylvania and insuring their cars in the state. Reports indicate that cases similar to this have been filed before as the auto policy premiums and coverage requirements in Pennsylvania are a lot more affordable as compared to other states. Corbett adds that the real financial victims in these cases are the honest and hardworking citizens of Pennsylvania who carry the burden of paying high premiums when their insurance providers find out that they have been paying for claims filed by fraudulent motorists who are not really residents of the state.

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The New York State Insurance Department (NYID) is planning to change some regulations for no-fault auto insurance in order to help reduce fraud which is hitting many carriers as of late. If not stopped, frauds could contribute to the increase of premium costs for policyholders.

Superintendent James Wrynn says state regulators are trying to be vigilant to protect the welfare of consumers. He adds that New York car owners do not have to pay extra fees in fraud and abuse tax, referring to the more than 50 percent increase in no-fault auto insurance as caused by the increase in fraudulent claims.

The proposed changes would require policyholders to provide more information on medical forms and reduce the need for additional verification which is currently practiced by New York car insurers. State regulators say the move will not only hasten the processing of auto insurance claims but will also reduce fraudulent claims.

Insurers will likewise be given more freedom in denying health services that are not billed in the fee schedule policyholders comply with. Additionally, insurers will be able easily suspend claims made by medical clinics suspected of fraud or conspiracy thereof. Furthermore, NYID is planning to increase the maximum attorney’s fee.

Wrynn explains that people who are exploiting the existing system must be stopped in order to protect consumers. Since no-fault auto insurance is most vulnerable to fraud, regulators see a strong need to reform it. Regulators say changes are one step towards achieving their goals in consumer protection.

The move is in response to the suggestions of Insurance Information Institute’s Robert Hartwig who cited the state’s poor controls and high limits as the major reason why many corrupt lawyers, medical practitioners, and street-level crooks are making a fortune out of the no-fault industry.

Regulators are pushing for legislative actions to enact the proposals. This includes a state legislation restricting mandatory claim fees and improvements that would equip local police to better investigate arranged car accidents.

No-fault auto insurance fraud is seen by industry specialists as a growing problem in New York State. NYID reports that there are 11,000 fraudulent no-fault claims since the year began, which is already a seven percent increase from its total number in 2008. The number of no-fault fraudsters who were apprehended by authorities went up by 52 percent from 2007 to 2008.

The Property Casualty Insurers Association of American is supporting the claim, saying there must be something done to help reduce the auto insurance premiums of New Yorkers. As of present, New York State is the second highest state to insure a vehicle, with policyholders paying nearly 50 percent higher than the nationwide average.

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