NICB: Car Insurance Leads Iffy Claim Figures in Tex., NY, NJ

Personal auto insurance was the line of coverage that generated the most questionable claims (QCs) in Texas, New York and New Jersey between 2010 and 2012, according to three more state-specific reports on QCs that the National Insurance Crime Bureau (NICB) released Wednesday.

According to the NICB,  which receives QCs from insurers that flag the iffy claims for review, the bureau’s investigators can assign up to seven reasons to a single claim that might signify fraud.

Of the three states, the steepest year-to-year increases in personal auto QCs was in the Empire State, where the number of shady New York car insurance claims increased by 41 percent between 2010 and 2011 and 9 percent between 2011 and 2012.

Here are the figures on what the bureau found on QCs for personal auto coverage in those states between 2010 and 2012:

State # of Questionable Claims by Year
2010 2011 2012
New York 5,831 6,040 7,007
New Jersey 1,005 1,492 1,621
Texas 5,253 5,447 6,949


The NICB also ranked which cities in each of those states generated the most total QCs in that time period:

New York

  •  New York City, 5,140 QCs
  • Buffalo,184 QCs
  • Rochester, 155 QCs
  • Hempstead, 110 QCs
  • Yonkers, 88 QCs

New Jersey

  • Newark, 173 QCs
  • Paterson, 105 QCs
  • Jersey City, 82 QCs
  • Elizabeth, 57 QCs
  • Trenton, 51 QCs

Texas

  • Houston, 2,010 QCs
  • Dallas, 892 QCs
  • San Antonio 682 QCs
  • El Paso 455 QCs
  • Fort Worth 357 QCs

The NICB released reports on other states earlier this week that showed personal auto as the leading QC-producing policy type in California, Colorado, Massachusetts and Florida. Those four states—like Texas, New York and New Jersey—also saw increases in the number of auto-related QCs between 2010 and 2012.

The NICB said that QCs make up only a fraction of all U.S. insurance claims, with 116,268 QCs nationwide in 2012 but about 70.5 million claims overall, meaning QCs made up less than 1 percent of all claims that year.

In November, the NICB released a report on questionable claims nationwide and found spikes in recent years in the number of personal auto QCs 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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