Senate Passes Klein Bill to Crack Down on Auto Insurance Fraud

Measure Would Increase Penalties for Criminals Who Forge Auto Insurance Cards  

Legislation sponsored by Senator Jeffrey D. Klein (D-Bronx/Westchester) that would impose tougher penalties on those who commit auto insurance fraud, passed the State Senate today.

Klein’s bill (S.578) would make it a felony to forge an auto insurance card or certificate of insurance. In New York State, these documents are necessary to obtain the government issued documents, such as a vehicle registration, that are required to legally operate a motor vehicle.

“Everyone pays the price for auto insurance fraud,” Senator Klein said. “This commonsense measure will help law-abiding New Yorkers from having to pay higher car insurance because of the misdeeds of others.”

Forged insurance cards and documents are often used to fraudulently register cars so that owners may operate them without paying auto insurance premiums. Klein’s bill also makes the selling of 10 or more false insurance cards or documents a felony.

The bill is pending in the Assembly.