NY No-Fault Claim Costs Climb

Auto insurers in the Empire State have even more of an incentive these days to hone fraud-detection capabilities, as no-fault claim costs have risen 56 percent since 2004. According to a recent analysis by the Insurance Information Institute (I.I.I.), auto insurers’ typical no-fault payment for the medical care of accident victims was $8,748 per claim in the second quarter of 2009. This represents a noticeable leap from late 2004, when the average no-fault payment stood at $5,615 per claim.

When asked about precipitating factors to the hike, Dr. Robert Hartwig, economist and I.I.I. president, pointed to loopholes in the no-fault system. In a recent press release, he added that the system is particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.