Bill would strike at auto insurance fraud
ALBANY -- U.S. Sen. Charles Schumer has proposed a bill to create federal jail sentences and increase fines for car insurance fraud, which drives up rates for New Yorkers.
State Sen. Neil Breslin of Albany County is holding hearings to address automobile fraud in state legislation.
The New York Daily News reports fraud cases have jumped 33 percent since 2006 and contributed to a 6-percent increase in most auto insurance rates over the last year.
Schumer says car insurance for a typical New Yorker costs $250 a year more than in other states and fraud is partly to blame.
He says auto fraud has exploded in the New York City area and will increase soon in upstate areas unless something is done.
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