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Stop Auto Fraud Now: Protect Regulation 79!
Support Regulation 79
Did you know that fraud impacts nearly one out of every ten used car sales in New York? By documenting a vehicle’s condition, Regulation 79 detects and deters auto theft and automotive insurance fraud. The program only requires a small percentage of used vehicles to be inspected and targets those most likely to be stolen or otherwise involved in insurance fraud claims.
Supporting Regulation 79 means supporting local businesses, protecting consumers, and stopping insurance fraud which drives up insurance rates for all car owners.
The Facts About Prevention
Photo inspections continue to have a strong anti-fraud impact. Inspections have helped avoid $2.4 billion in pre-existing fraudulent damage claims over the past five years, based on research by the CARCO Group.
The ROI is compelling: $41 of false claim payouts are avoided for every $1 invested in fraud prevention through pre-insurance inspections, and consumers equally benefit from cost savings on their auto insurance premiums.
The Coalition Against Insurance Fraud conducted attitude research on consumers and found that:
- Over 66% of consumers think that insurance fraud occurs simply because fraudsters believe they can get away with it. Without preventative measures like Regulation 79, they do.
- 24% of consumers believe it to be acceptable to pad insurance claims in order to cover costs for their out-of-pocket deductible
Diminishing the impact of Regulation 79 would allow fraud losses to rise. Fraudsters would be emboldened to step up their criminal activities in the face of diluted detection and deterrence. In turn, drivers could face premium increases thanks to mounting fraud losses against auto insurers.
Why is Regulation 79 Under Attack?
We believe certain automobile insurers and allies want to simplify their customer pipelines in a rapidly tightening auto marketplace that is seeing unprecedented competitive challenges for policyholder acquisition and retention.
Success in watering down Reg 79 could also weaken vehicle photo inspections and anti-fraud protections in the two other states that require them: Massachusetts and New Jersey. Combined, they form a large segment of the U.S. auto market.
Some fraudsters even staged accidents in order to make the pre-existing damage to their vehicle appear recent, allowing them to collect fraudulent insurance payouts.
Contact Your Elected Officials Today
Contact your representatives in Albany and tell them to fight for Regulation 79, a critical tool in New York’s fight against auto insurance fraud!
In the past 5 years alone, photo inspections have helped to avoid $2.4 billion in pre-existing fraudulent damage claims – keeping auto insurance rates lower for all of us. Meanwhile, we’ve seen the decision to roll back similar vehicle photo inspections and anti-fraud protections backfire in other states. Massachusetts, for example, saw a spike in collision claims after they rolled back their program.
We cannot let New York be next.