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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That could be a costly mistake. Taking a few minutes to review and adjust your auto insurance policy could save you hundreds of dollars per year.

Saving on your car insurance is easier than you might imagine. Here are three ways to reduce your costs, as well as an estimate of potential savings based on the national median rate of about $1,400 per year reported by InsuranceRates.com. If you pay more than the median rate, you could save even more.

1) Take a hard look at your deductible. According to the Insurance Information Institute (III), raising your deductible from $250 to $1,000 could reduce your collision and comprehensive coverage costs by up to 40 percent. You’ll incur higher costs should you need to file a claim, but the amount you’ll save on your premiums may be well worth it.

Estimated Savings: $170 per year

2) Combine your auto insurance policy and either home or renters insurance policy with a single insurer. According to the III, converting to a multiline policy could save you as much as 15 percent on your auto premium. Plus, you’ll have one fewer bill to pay each month.

Estimated Savings: $210 per year

3) If you can afford to, pay your auto insurance premium in one lump sum. Many insurers charge a fee to break up your premium into monthly payments, and even a few dollars a month could amount to a hefty surcharge.

Estimated Savings: $60 per year

In addition, make sure you shop around and speak with agents from several different companies. Insurance providers often specialize in different types of drivers, and depending on your personal circumstances, it’s probably worth your while to compare quotes.

To learn more ways to save and to compare rates online, visit www.InsuranceRates.com.

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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Jim Haskins, Executive Vice President of Claims and Procurement for Aviva Canada, explains, “While Canadians are traditionally very experienced winter drivers, the first snowfall of the year can be extremely challenging even for the most apt motorist. Icy road conditions result in vehicle sliding and skidding, which are the most common cause of collisions particularly at the start of the season.”

Aviva’s data also shows that roughly 5.6 % of insured drivers file claims in winter, as opposed to 4.1% – the average number of people filing claims during the rest of the year. Again, winter road conditions, are to blame. Black ice, sleet, and snow can force drivers to focus all their attention on the road directly in front of their cars, rather than on everything around them. This focus means that there’s less attention paid to vehicles to the left and right, which, in turn, causes fender benders and side-on collisions to become more common.

In an effort to reduce the number of winter accidents, the customer service department at Aviva Canada offers the following helpful hints:

- Invest in snow tires and new windshield wipers. The tires are especially important, as they allow drivers to stop up to 40% faster than they can when using all-season tires.
- Always keep an emergency kit in your car. It should include a flashlight, snow shovel, thermal blanket, extra windshield washer fluid and anti-freeze, jumper cables, hazard flares, and a few non-perishable food items, like granola bars, or beef jerky.
- Drive slowly, and maintain a safe distance between your car and the one in front of you.
- Program the numbers of your insurance company, and a towing company, into your cell phone, and keep a copy of your insurance card in your car.
- Check the road conditions for your destination before you leave home, and if they’re at all questionable, be sure someone knows your route, and when to expect you.
- Don’t take chances: if the roads are bad, don’t travel at all.

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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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Some insurance companies or firms offer a type of coverage especially designed for female drivers. Women can avail of this type of coverage and pay lesser premium fees and other expenses. Although this is basically the same as any other car insurance policy, the difference lies on the fact that female drivers are generally known to be involved in less risk than men.

The business of insurance is grounded on risk-taking. If there is a risk, there is insurable interest. If a risk causes loss, an insurer pays up. If a risk does not take place, an insurer gets to keep premiums. Whenever there is a claim made by a client, a company tries to compute how much they are going to lose if they pay the claim. Now, this would depend on risks involved. Insurance companies would often adjust the amount of premiums that will enable them to conveniently make a justified payment without losing profit. Getting to know their clients and finding out who among them poses the highest risk – thus highest expense – is a key strategy in making sure that they will not go bankrupt.

Statistics show that a majority of road accidents have been caused by young and inexperienced drivers, most of them male. This same data shows that women, whether young or otherwise, have been involved in fewer accidents than men. Add this to the fact that there are usually more women than men in the outdoor population. This results in men being required to pay higher premiums. Women are allowed to pay lesser amounts because a company expects to make a profit because there is practically no risk involved. Even if women drivers do get involved in accidents, the amount of claims will almost never surpass the amount of profits.

This is also a reason why insurance companies have been aggressive in selling policies to women drivers. They have to compensate for losses they experienced in paying off claims involving accidents caused by men. It becomes a norm to expect that women are low-risk policy holders. The present trend has evolved to design insurance programs solely for women drivers – one with sufficient coverage albeit a lower rate of premium.

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