HAUPPAUGE, N.Y., April 26, 2011 /PRNewswire/ -- Following today's hearing of the NYS Senate Insurance Committee, Allstate, one of the state's leading providers of auto insurance, urges legislators to respond to the auto insurance fraud crisis.
Immediately following today's hearing, Krista Conte, New York spokesperson for Allstate Insurance Company, said:
"There was extremely compelling testimony delivered today at a hearing held by the NYS Senate Insurance Committee to examine ways to fight no-fault fraud. Insurance industry experts, insurers, law enforcement, doctors and more presented startling facts, data, and expert opinions about the insurance fraud crisis in the state that cannot go ignored.
"As the Insurance Information Institute announced earlier this week, the scale of fraud and abuse in New York State's no-fault auto insurance system today is at crisis levels. Not only is no-fault fraud (auto accident fraud) costing New York consumers and insurers hundreds of millions of dollars year-after-year, it puts drivers at risk.
"Those who would commit this type of crime are taking advantage of the broken no-fault system and they are organized, calculating and part of a big business. In essence, the perpetrators of this crime are imposing a 'fraud tax' on honest, hard working New Yorkers by gaming the auto insurance system.
"Without the support of lawmakers, incidents of fraud will continue to increase. Responsible citizens are the victims. We urge lawmakers to enact comprehensive, meaningful no-fault insurance reform that puts citizens of New York first."
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 The Allstate Corporation