Hey, Insurance Companies, Here's Some Driver Fraud Hiding in Plain Sight - Streetsblog New York City

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"An easy solution for New York State car insurers to detect potential "garage fraud," one of several factors driving up the high cost of car insurance in the state, is hiding in plain sight. According to city data, there are 20,992 vehicles that are registered outside of the tri-state area (plus Pennsylvania) that have received at least one violation in New York City in each quarter this year"

"This creates a vicious cycle. By adding risk to city streets, but not contributing to the insurance pool, these people committing "garage fraud" are shifting the insurance burden to car owners who do properly register their cars and pay insurance in state, further driving up insurance rates for law-abiding drivers. This in turn gets more people to register their cars out-of-state or even to drive without insurance."

Streetsblog requests tax-deductible donations to support free, high-quality journalism and offers a special gift for major donors during its annual fundraiser. New York City streets contain many out-of-state-registered vehicles owned by residents who have not registered in New York within the required 30-day period. City data show 20,992 vehicles registered outside the tri-state area (plus Pennsylvania) received at least one violation each quarter this year, indicating likely in-city use while avoiding higher New York insurance rates. Such "garage fraud" shifts risk away from noncompliant drivers, raises premiums for compliant owners, and encourages further out-of-state registration or uninsured driving.

Read at Streetsblog