AutoInsurance.com: Complex Insurance Operation Undone in Pennsylvania

    RANCHO CUCAMONGA, CA, April 17, 2012 /24-7PressRelease/ -- Recent charges against a dozen people in the northeastern U.S. who are suspected of perpetrating several insurance cons highlight the need for consumers buying coverage to make sure that they are dealing with licensed professionals operating within the law, according to AutoInsurance.com.

The suspects formed a criminal network that Pennsylvania Attorney General Linda Kelly says was headed by Clifford McCoy, a 62-year-old New Jersey man. McCoy allegedly subverted his insurance agent license and companies he owned in Philadelphia to issue thousands of auto insurance policies registered to fake addresses.

Authorities listed 15 businesses in Philadelphia they believe were used mostly to dodge higher premiums in other states. Other suspects recruited for and maintained companies in the crime ring.

Investigators detailed a 2008 operation in which they say McCoy used nonexistent businesses to register and insure vehicles. Another suspect, James Bernier of Philadelphia, allegedly aided the operation by creating computer-generated documents as counterfeit proof of residency. McCoy also used access codes he had as an agent to buy bottom-dollar coverage in Pennsylvania for nonresidents.

According to the National Association of Insurance Commissioners, states around Pennsylvania rank among the top 10 with the costliest average coverage in 2009: New Jersey, ranked second; New York, ranked 4th; Delaware, ranked 5th; and Maryland, ranked 10th. Pennsylvania, meanwhile, was ranked 17th.

AutoInsurance.com recommends that consumers stay alert to potential schemes that can hook shoppers looking for the best price. With such high premiums in different areas of the country, illegitimate sources can lure desperate customers with the possibility of cheaper rates. But considering the potential consequences, using such illicit services could hurt the driver in the long run.

This week, New Jersey regulators published a consumer guide to avoiding such cons and emphasized the need to exercise caution in the period immediately following a crash. They offered the following advice:

-- Only use services from health care and legal professionals you know and trust.

-- Avoid offers that seem too good to be true.

-- Keep organized, detailed records of visits to the doctor.

-- Always provide an accident report to police after a crash.

-- Take photos of crash damages if it's safe to do so.

-- Note how many passengers were in the other vehicle so that individuals trying to game the system will not get compensated for damages despite the fact that they weren't even in the vehicle.

Source: http://www.state.nj.us/dobi/pressreleases/pr120410.html

For more on coverage-related issues, head to http://autoinsurance.com/ for access to informative resource pages and an easy-to-use quote-comparison generator.

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