Trenton, NJ – New Jersey is taking aim at residents who fraudulently register their vehicles or obtain auto insurance in other states.
Join our WhatsApp groupSubscribe to our Daily Roundup Email
The Assembly recently passed a measure that makes so-called “reverse rate evasion” a form of insurance fraud under state law.
Under the practice, vehicle owners register and insure their vehicles in other states to get cheaper premiums, even though the Garden State is their principal residence or the insured vehicle is mostly kept in New Jersey.
Critics say this results in the state losing substantial revenues, causes higher premiums for those who properly register their vehicles and reduces insurers and stockholder profits. They also note that many out-of-state policies provide lesser coverage than what’s mandated under New Jersey law.
But since the state doesn’t include reverse rate evasion as a form of insurance fraud, such matters can’t be prosecuted by the state’s Insurance Fraud Prosecutor’s Office, which has called for changes in the law.
“Insurance fraud is not only wrong, but it costs honest drivers money through higher premiums,” said Wayne P. DeAngelo, D-Hamilton, one of the bill’s primary sponsors in the Assembly. “We’ve made a lot of progress in controlling auto insurance rates, but we still have a long way to go and cracking down on fraud needs to be a big part of that continuing effort.”
The Assembly passed the measure (A-2052) by an 80-0 vote on June 21. It now moves to the Senate, where it will be considered by the Commerce Committee. But that panel has not yet scheduled a hearing on the proposal.
If the bill becomes law, it would make reverse rate evasion a fourth-degree crime, which means violators can be jailed for up to 18 months. Specific fines would be determined by a judge under the state’s Insurance Fraud Prevention Act, according to the text of the bill.
Paul Loriquet, a spokesman for the state Attorney General’s office — which the Insurance Fraud Prosecutor’s office is part of — said it would support such legislation.
“It is something we’ve looked for in recent years,” Loriquet said.
Besides DeAngelo, the bill’s primary sponsors in the Assembly were Democrats Nelson Albano and Matthew W. Milam, both of Cape May Court House; Linda Greenstein of Hamilton (Mercer County); Annette Quijano of Union and Paul Moriarty of Turnersville.
Sen. James Whelan, D-Atlantic, is sponsoring the measure in that chamber.
doesnt all the NY tate drivers with jersey plate make up for the loss
New York State should do the same practice. I live in Florida but how many times i travel to New York City and see Pensylvania plates is alarming and all states should really crack down on fraudulent behavior. When people do these type of fraud everyone pays higher premiums.
Why can’t people just be honest once in their life?
What’s the real difference ? If car is insured who cares ? But we are dealing with a bunch of thugs and mafia style legislators who think the own us and can run our lives …. The mafia really has big competition today and they will lose since the government has more resources to fight them
I hope new york will follow.
Just wait till bloomberg sees these he won’t believe that he missed a money making opportunity he’ll have passed in no time
If you live in NJ, than your car should be registered in New Jersey. There are hundreds of cars parked around Laekwood, especially near BMG, with out-of-state license plates. Since this type of fraud costs all of us money, if you know of someone who lives in Lakewood but registers their car in NY or elsewhere, there is a chiyuv to report this person to the police or NJ department of motor vehicles.
NYS should do it too, there will be a lot of revenue just from my neighborhood alone!
New York should do the same immediatly. A lot of these out of state plates do not even belong on the car that’s carrying them and I’ve seen drivers use the same plate on different cars. This means that these cars are not insured and someone injured by them can not collect!
Anonymous 4:18 says, “What’s the real difference ? If car is insured who cares?”
The fact is that the courts may allow the insurance company to deny coverage and avoid paying if the car was fraudulently registered with an out-of-state address.
http://www.nycourts.gov/reporter/3dseries/2009/2009_29311.htm
Maybe if the rates in NJ were affordable, people would not resort to fraud.
Freaking socialists! it is more and more like USSR at its worst all-controlling craziness. Instead of make it a free competition where free market of insurances would define the buyers’ policy these commies make it all obligatory. may they do tshuvah and their policies rot!
This law is similar to the law that prohibits bringing in liquor from out of state.
They should also outlaw the sale of out of state newspapers, then you will see the media uproar.
you can easily see the key phrase “reduces insurers and stockholder profits”.its just rolling along with the old pork barrel.
If New Jersey’s scummy legislators weren’t so greedy, they’d bring down their costs to a bearable level that would support affordable, competitive insurance rates. Obviously, people are being given an onerous incentive (high rates) to flee the jurisdiction for more reasonably priced locales. Maybe the legislators should instead be taking a look at why the Garden State’s auto insurance rates are so punishingly high. Are state laws overly generous to the greedy and extortionate tort bar, the primary beneficiary of auto insurance in general? Those are the mofos who should be criminalised, not Joe Sixpack struggling to keep his car.
I thought the Judenrat eventually also died in the camps…I didn’t know they were alive and well in USA.
They also held it was a chiyuv to report other Jews.
I would assume that young couples being supported by their parents, have their car on their parents’ policy as an additional car. This keeps the cost much lower for the parents, and they justify it because in reality the car is theirs.
I was pulled over 2 months after I moved from one part of NJ to another part of NJ telling me that I had to change my license or I would get fined. My neighbors have 3 vehicles with Pa license plates for 9 months now and they lived in NJ for 6 years. Why doesn’t anyone do anything about that? They just changed their insurance and tags because they had a address they can use in Pa. That is not fair and they need to get fined. They have two incomes coming in the house and I have one and why shouldn’t I just do the same? It really pisses me off and these people that say what is the big deal as long as the cars are insured are wrong!!!!