Requiring fraudsters only to pay back what they stole sends the signal that this is not a serious crime. Might as well say, “Better luck next time.”

Jail time isn't necessarily called for here, but how about requiring that the three go back to the Chinese community and give presentations on why they shouldn't defraud the insurance system?

Sadly, the fact that they were even charged is an anomaly. Most courts don't prosecute auto premium evasion, and most states don't even have laws against it.

Only about 50 premium-evasion cases were prosecuted in the U.S. during the last two years, reveals the Coalition's criminal conviction database. And most involved drivers who illegally bought coverage after being involved in a crash.

Auto rate evasion defrauds honest consumers and both jurisdictions. In this case, Massachusetts drivers will subsidize accidents of the New York drivers. New York loses both the premiums that would have broadened the insurance pool in the state, and the registration fees the drivers are diverting.

Fairness is a key concept in insurance. When consumers sense the system works against them, they are more likely to cheat, and cheating begets more cheating. Insurers, regulators and lawmakers need to quash rate evasion schemes with strict laws and enforcement now, while they still can manage this growing crime.