A recent ruling from New York’s Suffolk County Supreme Court offers one of the clearest examples to date of how organized fraud schemes exploit the Empire State’s auto insurance system — and, in doing so, raise premiums for law-abiding drivers and families. amNY has the latest:

“In Integon v. Salazar-Ochoa, Suffolk County Supreme Court Justice Maureen T. Liccione dismissed eight auto accident claims after finding they were part of an organized staged-crash scheme targeting New York’s no-fault insurance system. The court described a coordinated operation involving ‘junker’ vehicles, commercial box trucks, more than 100 medical providers, and a recurring cast of claimants and attorneys. Policies were issued, accidents staged almost immediately, before premiums were even paid, and then canceled for nonpayment.”

Justice Liccione’s words cut to the heart of the issue:

“Insurance fraud is not a victimless crime. Because premium increases partly incorporate fraud costs, insurance fraud hurts all policyholders, not just insurers.”

That insight matters for all New Yorkers paying some of the highest auto insurance rates in the nation. As the amNY piece notes, “industry estimates suggest fraud alone can add as much as $300 per driver each year,” a meaningful burden on families and small businesses already navigating tight budgets. 

The Suffolk County decision didn’t just expose how staged crashes are orchestrated; it highlighted the broader vulnerabilities in a system that allows such schemes to flourish. 

Staged crashes are sophisticated, dangerous maneuvers that put innocent drivers at risk on our highways. New York now ranks second-highest in the nation for staged accidents, with 1,729 incidents in 2023 alone. Suspected motor vehicle fraud reports have increased from 24,238 in 2020 to 43,811 in 2023, a staggering 80 percent increase.

The facts laid out in this case should serve as a wake-up call. When fraud rings can manipulate the system with such precision it’s clear the status quo isn’t working. Reform would protect consumers, restore integrity to New York’s no-fault system, and ensure honest drivers are no longer forced to subsidize organized criminal activity through higher premiums.