(NEW YORK) The New York State Senate today passed legislation to crack down on auto insurance fraud which has led to injuries – even death – for innocent victims and costs hundreds of millions of dollars a year in higher premiums when New Yorkers already pay some of the highest auto insurance rates in the country.

The three bills approved today would significantly cut down on auto insurance scams by increasing penalties for those who commit or assist in the fraud and by giving more flexibility to insurance companies to prevent criminals from getting policies and continuing to commit auto fraud.

“Auto fraud is a very serious problem that costs lives, and costs New Yorkers millions of dollars,” Senate Republican Conference Leader Dean G. Skelos said. “The Senate has been passing bills to combat auto insurance for more than a decade, yet, the Assembly has not acted on them while the problem has only grown worse. It’s time the Assembly pass these bills so they can be signed into law, and consumers can save money by not having to pay the exorbitant rates that are caused by fraud.”

According to the National Insurance Crime Bureau (NICB), New York ranks among the top five states for fraudulent auto insurance claims.

Earlier this year, the New York City Council held a public hearing on auto insurance fraud. At the hearing, Brooklyn Assistant District Attorney Jeff Ferguson said 36 percent of insurance claims are either fraudulent or inflated and added that, “Some 22 percent of those claims were entirely bogus, while another 14 percent included inflated injuries and unnecessary treatments to gouge money from insurance companies.”

“New York is awash in a tsunami of insurance fraud. It is very encouraging to see the Senate take action on an issue that impacts so many New York State residents. The passage of these measures is critically necessary to stem the rampant fraud in the automobile no-fault system,” said John A. Corlett, Legislative Committee Chairman for AAA New York State, an association serving 2.7 million drivers in the state.

Senate action on the bills this year came shortly after the 10th anniversary of the tragic death of Alice Ross, a 71-year-old wife and grandmother who was killed as the result of a fraud-related, staged auto accident in Queens. One of the criminals drove into her car, causing her to lose control of her vehicle, strike a tree and die.

The Senate’s Anti-Auto Fraud Legislative Package includes the following:

• Bill (S3547), sponsored by Senator James Seward (R,C,I- Oneonta): makes it a crime to stage a motor vehicle accident with intent to commit insurance fraud. If a staged motor vehicle accident results in serious injury or death, the person who staged the accident could face a maximum sentence of up to 25 years.

“Staged accidents hike auto insurance rates for all and pose a serious public safety risk as well,” Senator Seward, Chairman of the Insurance Committee, said. “Women and elderly drivers are in particular danger. They are often targeted because they are less likely to be confrontational after an accident, making it easier for criminals to take advantage of them. The Senate has recognized the need for change for some time and the Assembly needs to join the effort so we can put these criminal enterprises out of business for good.”

According to the NICB, insurers across the country reported a 102-percent increase in suspected cases of staged auto accidents between 2008 and 2011.

• Bill (S3033), sponsored by Senator Skelos (R, Rockville Centre): makes it illegal to act as a “runner” who steers accident victims towards crooked doctors who bill Medicaid for unnecessary medical treatments. Runners are key members of auto fraud rings. Under this bill, runners and  their associates could face up to seven years in prison. (A.4597, sponsored by Assemblyman J.Gary Pretlow, D-Westchester.

“Runners and other street-level criminals that participate in these enterprises steal from all of us in the form of higher insurance premiums and fake medical billing,” Senator Skelos said. “We need to enact tough penalties that keep runners and other complicit individuals from taking advantage of New York’s no-fault system and profiting from their auto fraud-related crimes.”

• Bill (S1959A), sponsored by Senator Martin Golden (R-C, Brooklyn): allows insurance companies to retroactively cancel policies taken out by people who commit auto fraud. These criminals often take out policies and pay for them with bad checks or stolen credit cards just before they stage accidents. Under current law, insurance companies cannot cancel the policy and policyholders wind up paying for it through higher premiums. This bill would take that burden off honest consumers. (A3774A, sponsored by Assemblyman Carl Heastie, D-Bronx)

“Auto insurance fraud is costing New Yorkers millions of dollars, and it’s time that fair and honest members of our community stop paying for the crimes of others,” stated Senator Golden. “This legislation will give insurance companies the right to revoke insurance policies for those who try to game the system.”

This measure would bring New York in line with the other large no-fault states and remove any incentives for staged accidents. In fact, only seven other states (AZ, CO, KS, ME, MD, NC and SD) do not allow for retroactive cancellation. Innocent victims of uninsured drivers would be covered under their own policy or the Motor Vehicle Accident Indemnification Corporation.

Last year, the longest-running auto insurance rip-off scam in history was busted by federal and New York City authorities. Three dozen people, including doctors, lawyers and patients coached to fake injuries, are accused of stealing more than $279 million in accident benefits over five years. The ring allegedly exploited the state’s “no-fault” auto insurance law as their own giant state-sponsored ATM machine. In New York, vehicles registered in the state are required to carry insurance that lets drivers and passengers obtain up to $50,000 for accident injuries, regardless of fault.

The bills have been sent to the Assembly.

(Copiague, NY) Economists are closely watching the used car industry in the United States and across the Atlantic to get a sense of the significant role played by pre-owned vehicle markets durinng recessionary periods. The industry in the U.S. has been enjoying a boom over the last few years as Americans weather the aftermath of the Great Recession, but things are different for the member nations of the European Union.

According to the European Automobile Manufacturers’ Association (ACEA), March was not a good month for vehicle sales in the EU market. Car sales dropped by more than 10 percent, a clear sign that the European recession is affecting what was once considered one of the best global markets for auto sales. This downturn is also affecting auto industry giants like General Motors, which has experienced heavy losses in its European operations. Some analysts have actually pondered whether GM should stay in Europe.

Although American consumers are flocking in great numbers to used car lots and showrooms across the U.S., European consumers are taking a more conservative approach. Rampant unemployment and tough fiscal measures in the EU are keeping drivers off the road. A drop in new car sales does not always translate into a boom for used car sales, but things are beginning to look up in Germany. Used car dealers are keeping price tags on their inventories under 15,000 euros, which has become a benchmark maximum price that German consumers are willing to pay for a quality used vehicle.

Used Car Sales in China Post Steady Gains

Strong new car sales can be expected in emerging economies such as Brazil, Russia, India, China, and South Africa, also known as the BRICS nations. In China, however, the burgeoning new middle class is more interested in shopping for pre-owned vehicles.

Used car sales in China have grown stronger than new auto sales in the last two years. Analysts are predicting this growth to continue, which means that China will be the world’s largest used car market by the end of this decade. Foreign automakers have been deeply interested in the Chinese new car market until now, but the solid growth in used car sales is prompting car manufacturers to establish themselves as a reliable brands for pre-owned vehicles. This means that GM could feasibly explore the used car market in China by becoming a dealer in that country.

Driving Costs Rise in the United States

Although the Great Recession appears to be over in the U.S., drivers are not taking any chances when it comes to controlling their automobile expenses. A widely accepted notion among used car buyers is that a pre-owned vehicle purchase eliminates the significant value depreciation associated with new car sales, but what about the cost of maintenance and driving for used cars?

A recent study released by the American Automobile Association (AAA) revealed that driving is getting more expensive each year in the U.S. The cost of driving and keeping up a vehicle in the United States is about $9,000 per year. This means that driving costs went up by approximately two percent between 2012 and 2013. This cost is the same for both new and pre-owned vehicles, which means that those drivers shopping for used cars are still ahead in the sense that their acquisition costs are appreciatively less.

(Long Island, NY) Used cars are no longer seen as unreliable methods of transportation or hand-me-downs for senior high school students heading out to college. The used car marketplace in the United States is making headlines in publications such as Time magazine and the Wall Street Journal nearly ever day this year. Economists are taking a close look at the current boom in used car sales, and their research is providing and interesting glimpse as to why pre-owned vehicles are all the rage in 2013.

High Demand for Used Cars

Amidst the ongoing used car boom, the Wall Street Journal compares pre-owned vehicles to gold. Used cars are not traditionally considered investments since they tend to lose their value a lot faster than precious metals or real estate. Under the right market conditions, however, used cars can command high prices. It all goes back to the Car Allowance Rebate System of 2009, more commonly known as “cash for clunkers.” Nearly 700,000 SUVs and other fuel-inefficient used cars were taken off American roads in exchange for incentives to purchase smaller, fuel-efficient vehicles.

With so many clunkers out of circulation, new car dealerships were able to move their inventories at the height of the Great Recession. Unemployment was rampant and vehicle financing was tight; these factors prompted automakers to play it safe by reducing their output. People started driving less and began taking better care of their cars.

Over time, the value of used cars appreciated to the levels experienced today. A particular used vehicle owner profiled by the Wall Street Journal sold his 13-year old Honda Accord to a dealer for about a quarter of the value of a 2013 model. That was a cash transaction that took a few days, and the dealer found the Accord by scouring online listings.

Tight credit and a more attractive fleet of used cars are behind the current boom, and what owners of used vehicles can take away from the Wall Street Journal article is that they have a potential investment in their driveways and garages. The prospects are even better for used car owners who would like a cash transaction that is easy, fast and convenient. Current market conditions are clearly competitive, and used car buyers are courting owners with better cash offers and improved customer service.

Small, fuel-efficient and hybrid vehicles = easy cash

Vehicle owners who traded their clunkers for fuel-efficient vehicles in 2009 stand to gain the most in the current used car boom. Dealerships that specialize in new cars are not seeing the same amount of trade-in vehicles that they had enjoyed since the 20th century. Car owners who realize the cash potential of their used vehicles are opting for generous amounts of cash.

Used car shoppers are looking for fuel-efficiency above all. Oil prices are likely to remain high, and thus shoppers are interested in used compact, economy and hybrid vehicles. Those who own vehicles matching these descriptions can quickly convert their used cars into a quick cash infusion. The rationale behind the sharp value appreciation for these pre-owned vehicles is that they are built to last. According to a recent Time magazine article, buyers are interested in saving between $20 to $80 per month on their financed auto purchases, and thus fuel-efficient used cars manufactured after 2007 are in very high demand.

(Long Island, NY) After slightly lagging behind new car sales in 2012, the used car marketplace is reporting strong gains in early 2013 and promising forecasts for the rest of the year. Americans are exercising caution with regard to their economic prospects and financial solvency, and to this end they are looking at used cars as a sensible option at a time when low wages and unemployment are still major concerns.

More than 40 million used vehicles were sold in the United States in 2012, an increase of 4.4 percent over the previous year. CNW Research, a firm dedicated to tracking vehicle sales in the U.S., estimates that used car sales during the first month of 2013 were already four percent higher in a year-over-year basis, and current forecasts indicate that previously-owned vehicles will once again be in the minds of American car shoppers for the rest of the year.

The American Automobile Association (AAA) estimates the average age of cars currently driving on U.S. roads at 11 years. This is considerably higher than in 1995, when that average was 8.4 years. Total new and used car sales posted a 5-year record in 2012, but it is important to remember that car dealers are still trying to deal with the overall dearth of auto sales experienced back in 2009 when less than 10.5 million cars were sold during the worst period of the Great Recession.

One of the best-selling used vehicles in 2012 is bound to have a repeat performance in 2013 thanks to the rebound of the housing market. The Ford F-Series line of pick-up trucks were the most widely sold used vehicles in 2012, and many car shoppers who acquired them work in the residential construction and improvement industry. Vehicles made by Japanese automaker Suzuki are also expected to be in demand in the next few months due to their imminent exit from the American market.

Compact sedans and economy passenger vehicles are also doing quite well among used car shoppers. To this end, the Toyota Camry, Honda Civic, Ford Focus, and the Honda Accord clearly lead the way. These cars are highly sought-after by used car buyers due to their reliability and adequate performance even after tens of thousands of miles. In many parts of the U.S., American drivers are getting used to the sight of Toyota and Honda passenger vehicle models from the early years of the 21st century.

Used car shoppers in the U.S. have traditionally looked for low-mileage certified pre-owned (CPO) vehicles, but those are running low at the moment due to the ongoing trend of keeping their cars longer. High demand for used CPO deals is expected in 2013, and those cars will probably spend a little longer on the driveway since Americans are actually driving less these days.

In some parts of the country, used car sales are displacing new vehicles. A Ford dealer in Michigan is doubling its used car operations and building new lots to accommodate shoppers. Vehicle owners are also becoming savvier in terms of maintenance, and many are forging a partnership with their neighborhood auto shops to keep their cars optimally running longer.