HAUPPAUGE, N.Y., March 24, 2011 /PRNewswire/ -- Allstate has received claims from a seemingly staged auto accident depicted in a surveillance video released by the New York City Police Department late Tuesday. The incident occurred in the Bronx less than a year ago. On the same day, the New York State Senate passed a Staged Accident Bill that would make it a felony to intentionally cause a vehicle collision.
Krista Conte, New York spokesperson for Allstate Insurance Company, said:
"We commend the NYPD for investigating this incident.
"We applaud the New York State Senate for passing a bill that would make it a felony to stage an auto accident, and look forward to support from the New York State Assembly. The legislation, sponsored by Senator James L. Seward, would be a deterrent for the criminals who prey on innocent motorists all in an effort to profit from insurance fraud.
"Not only is no-fault fraud, or auto accident fraud, costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk. Those who would commit this type of crime are taking advantage of the broken no-fault system and are organized, calculating and part of a big business. They are gaming the auto insurance system and the victims are honest, hard working New Yorkers.
"Without the support of lawmakers, incidents of fraud will continue to increase and insurance costs will rise. Responsible citizens are the victims. Enacting meaningful reform of the no-fault system is an important way to fight this expensive and dangerous crime."
The Allstate Corporation is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate®" slogan, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.
SOURCE Allstate Insurance Company