Brooklyn NY Auto Insurance Problems Drive up the Rates in the Borough

Many that live in New York State know the Brooklyn NY auto insurance problems. The borough has the highest insurance rates of any other city in the state of New York, making it very difficult for people to afford the insurance rates for their cars.

Why are insurance rates so high in Brooklyn New York you might ask? Brooklyn has become a haven for car insurance fraudsters over the last decade or so, which has resulted in millions of dollars of false insurance claims that are filed and paid out every year. The final result for all of this fraudulent insurance claims is that insurance companies have been forced to drive up their premiums and pass on their costs to the consumer.

Unfortunately, the unsuspecting consumer suffers the costs of Brooklyn NY auto insurance problems, because they are forced to swallow regular increases in their insurance premiums. For a good driver, with no violations on their driving record, it will cost almost $4,000 for the legal minimum coverage on an older model vehicle. For comprehensive coverage on an older model car, it will cost over $7,000!

One way people defraud the insurance companies is by filing false claims using the name of a fake doctor. The fake doctor sends the “injured party” to a fake clinic for treatment and then bills the insurance company. The result is millions of dollars paid out to fraudulent claims every year and regulators cannot keep with the sheer number of claims.

Unfortunately, until the problem is brought under control, the unwitting consumers will have to pay more for their insurance, or start taking the bus.