NICB: Several States Saw More Questionable Claims in 2010-12

Auto insurance claimQuestionable claims (QCs) submitted under personal auto insurance policies increased for California, Colorado, Massachusetts, and Florida between 2010 and 2012, according to the National Insurance Crime Bureau’s (NICB) recent breakdown of QCs originating from five specific states.

The bureau also reported that Michigan generated fewer personal auto QCs between 2010 and 2012.

In Michigan, personal vehicle QCs dropped 19 percent in 2010-11 and 42 percent in 2011-12.

In addition, the percentage of Michigan auto insurance claims labeled as QCs compared to the total number of QCs in Michigan shrunk from 80 percent in 2010 to 61 percent in 2012.

Personal auto coverage was the policy type generating the most questionable claims in 2012 among all five states:

State # of Questionable Claims by Year
2010 2011 2012
California 9,151 10,875 32,877
Colorado 944 899 963
Florida 7,569 8,551 9,537
Massachusetts 1,130 1,331 1,851
Michigan 4,029 3,253 1,899


Reports Rank States’ QCs by Location

The NICB also categorized some of its state-specific reports on QCs by the cities from which those QCs were generated.

Out of cities in Colorado, Colorado Springs generated 334 QCs in 2012 to beat out Denver for the lead by a small margin.

In Massachusetts, Boston led other cities in the state with 511 QCs in 2012.

In Michigan, Detroit generated 1,119 QCs in 2012, the highest number of QCs by a huge margin in 2012. Flint generated the second-highest number of QCs that year with 94.

The NICB looked at QCs in California cities and found that Los Angeles led all other cities by far with 3,246 QCs in 2012. Los Angeles was followed by San Diego, which had 862 QCs.

The NICB report broke down Florida by county, with Miami-Dade County outpacing other counties in QCs in 2012 by a mile. Miami-Dade had 3,530 QCs while the second-leading county, Orange, had 1,097. When categorized by city, Miami led all of Florida’s cities in the number of QCs in 2012.

QCs are referred to the NICB by insurers which flag claims they feel need further review. According to the bureau, a single claim can have seven reasons that it might be fraudulent.

According to the NICB, QCs make up only a sliver of all claims in the U.S. The bureau said that there were 116,268 QCs nationwide in 2012, less than 1 percent of the more than 70.5 million claims overall for that year.

The bureau released a report on questionable claims nationwide in November which showed an increase in the number of iffy vehicle claims in recent years based on flood and water damage.

 

About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for Patch.com and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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