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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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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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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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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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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To address such a disparity, the Texas departments of Public Safety, Motor Vehicles and Information Resources, and Insurance created an online state-wide insurance verification program called TexasSure, online at www.texassure.com, to lessen the number of motorists without insurance.

The same agencies have collaborated together to create a database connecting every registered vehicle in the state by its license plate, liability insurance policy and vehicle identification number. Through the program, tax assessors, collector and law enforcement officers will be enabled to verify the insurance status of any vehicle registered in the state.

In the South Plains/Panhandle region, state figures reveal that in Potter, Deaf Smith, Gray, and five other West Texas counties, at least 25% of vehicles are uninsured.

According to department spokesman Jerry Hagins, the figures exclude commercial vehicles since they are not yet covered by the online state-wide program.

Hagins also said that the state has begun sending letters to about 100,000 vehicle owners who are speculated to have insurance, but do not match records in registered insurance companies. After these specific owners are addressed, and their coverage status determined, the state will send a notification to car owners of an estimated 4.1 million vehicles without insurance. They will be warned that they violate state law and that minimum auto liability coverage will be required of them.

Hagins clarified that car owners who will receive this warning will not be asked why they do not have auto insurance, but that they will be give an alternative to rectify it.

Two years ago, state law required all automobile drivers to purchase at least liability insurance that includes coverage for damages and injuries caused by drivers.

Although TexasSure is still a new program, several law enforcement officers have expressed delight that this new system allows greater leverage in identifying whether a driver involved in an accident or is stopped in the middle of the road owns auto insurance or not.

State figures estimate that insured drivers in Texas shell out an additional $1 billion per year to avail of protection from uninsured drivers.

State officials are optimistic that this TexasSure program will prove effective even if some motorists weasel their way out by using fake proof-of-insurance cards or by availing of a month’s coverage so that they could renew their license plate number and corresponding registration requirement.

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Lawmakers in Missouri have started to file bills for the upcoming 2010 legislative session that is set to begin come January 6. According to reports, bills will focus on imposing a ban on all drivers from sending text messages while they are behind the wheel. State legislators believe that it is about time for them to do something regarding this growing concern on mobile communications, driving, and the number of road accidents in Missouri.

Last year, lawmakers from Missouri successfully imposed a ban on young drivers regarding their cell phone usage. 2008 saw drivers 21 years old and below being barred from sending text messages while on the road. Now, lawmakers are after older drivers. According to industry insiders, the state’s reaction regarding cell phone usage is quite effective, especially since instead of doing an all out ban, lawmakers focused on one particular age group at a time. Insurance analysts predict that by 2011, collisions and road accidents related to cell phone usage will decline significantly and can even be eliminated. Those who support the bills that will widen the scope of Missouri’s texting limitations strongly believe that texting while driving is very risky and hazardous that no driver should even think of doing it.

Alternatively, one of the largest cities in Northwestern Pennsylvania also has major plans regarding texting and calling restrictions for drivers. Last week, Erie City Council scheduled a public hearing that would discuss a potential ban on texting while driving and vote on a preliminary approval of the planned ordinance.

Reports say that Pennsylvania’s said ordinance included bans on calling and sending e-mails and text messages using cell phones by any person who is inside a moving vehicle. Even those who are riding a bike in the city will be included in this ban. Those who are caught violating planned provisions will be charged with a fine that ranges from $150 to $300. Experts agree with the state getting strict as motorists who are distracted by their communications gadgets have gained notoriety in the past year for causing serious accidents.

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According to reports, meetings have been ongoing since first of December between police officials and other state authorities. Insiders say meetings focus on seeking projects that will utilize the funds provided by the Underage Drinking Laws grant and will significantly reduce rates of underage drunk driving. Planned projects include seminars, youth oriented projects, sports activities, and many others.

State Police Commissioner Rodney Brewer, said in a recent interview that enforcement of activities to lessen drunk driving among the youth must be held together with a series of information campaigns to make people completely aware of the hazards involved in underage drinking. Commissioner Brewer adds that people neglect that. While teenage drinking is already dangerous, the real hazard comes in when drunk young drivers go behind the wheel.

Reports compiled by the Administrative Office of the Courts in Kentucky show that last year, there were 3,067 DUI arrests for teen drivers between ages of 16 and 19. Insurance insiders say that the number of DUI cases in Kentucky constitutes approximately 36% of the total insurance claims in the state. With the already high car insurance premiums for young drivers, claims for DUI caused collisions triggered further hikes in premium rates.

Data from the Insurance Information Institute reveal that more drivers under the age of 20 drive after drinking as compared to more mature motorists. Experts say that young motorists in Kentucky are more susceptible to drinking without regard to the fact that they need to drive home. Insurance companies are worried that if nothing is done to remedy the current issues on drunk driving; insurance costs may increase in the years to come making it more difficult for consumers to afford them.

According to local motorist groups, they are taking part of the regular meetings conducted by state police officials and are very happy that the local government is now taking action regarding this said predicament.

Final reports from state officials will be released on January 15 for final review and possible implementation.

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According to industry experts, almost all US drivers own a mobile phone, and all of them are prone to making and answering a call or sending and reading text messages while behind the wheel. Loosing focus because of being caught in an important call or being preoccupied reading long messages can be good enough reason for being involved in a collision. A study conducted a major insurance consultancy firm showed that majority of their respondents were professionals aged 30 to 50 and all of them use their mobile phones while driving. The result of the study showed that the respondents are willing to answer a call or immediately respond to an email or a text messages even if they are driving as they would not want to be reprimanded for not doing so, if the call or message is from their boss or a client.

With these in mind, local groups are worried that if the trends on mobile phone usage while driving does not improve, situations may be worse and may eventually show its effect on the number of car accidents. In Florida and New York, 7% of collisions were caused by drivers distracted while talking on their cellular phones. The rates for Pennsylvania are relatively lower at 5%.

An Insurance Information Institute representative said in a recent interview that they are targeting to release a mass promotional campaign on the fatal effects of motorists getting busy on cellular phones while driving. The organization estimates that the number of accidents resulting from mobile phone usage can go up during the holiday season. As Christmas gets near, people will be busy contacting family members and loved ones. Industry experts say that when a driver on the road received a call from a relative he hasn’t seen in years, the sudden rush of excitement can take over and there is a tendency for the driver to momentarily forget that he is currently driving. In that split-second that he forgets he’s on the road, a collision may have already taken place.

In addition to preventing cell phone use, there is strong support from the organization to fight motorists who hide traffic offences such as exceeding the speed limit in an effort to get cheaper insurance.

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According to reports, the state of California may be facing problems regarding unemployment. In the San Joaquin Valley in central California where a huge number of former employees were retrenched, high unemployment may result to more car owners driving in the state’s public roads without auto insurance because they don’t have enough to pay for it. In Fresno County, the percentage of unemployed citizens last September reached 14.1%; a lot higher when compared to 9.4% last year.

To save the day, the California Highway Patrol and the Department of Insurance are working hand in hand to educate low-income motorists about getting a low-cost car insurance program. Low-cost insurance in California offers basic liability coverage as mandated by state law. The Department of Insurance believes that only in making more drivers understand low-cost auto insurance will they lessen the number of motorists who prefer to not be insured at all simply because they afford it. A report by the Insurance Research Council released earlier this year announced that the impending increase unemployment across the country can cause a whopping increase in the number of uninsured drivers.

According to Department of Insurance state associate deputy commissioner Darrell Ng, the recent statistics from 2007 reveal that about 18% of Californians did not have vehicle insurance. Reports from the Department who that the 2007’s 18% estimate was highest in the past ten years, as it was only back in 1997 that the percentage of uninsured California drivers exceed 15%. Now, insurance experts are afraid that the numbers will go increase even more with the increasing number of job losses across California.

Commissioner Darrell Ng is set to help California Highway Patrol officials in San Joaquin Valley and Fresno in promoting the California Low Cost Automobile Insurance Program. The said program assists low-income motorists in purchasing insurance that satisfies their legal obligation.

Insurance Commissioner Steve Poizner said in an interview that day after day around one million uninsured motorists drive around the roads of California. According to Poizner, with the rate of how things are going, driving in California can be very risky – it’s not worth the severe financial risk of getting involved in accident. Poizner also adds that low-cost car insurance give little room for excuses on whether to be insured or not.

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