PA AG: 24 charged in car insurance fraud

December 24, 2009

This is a scheme that costs Pennsylvanians a lot of money. It causes our insurance rates to go up and Action News has warned you about this problem before.

24 people have been charged with falsely claiming to be Pennsylvania residents in order to obtain substantially lower car insurance rates. The practice is called Rate Evasion.

Attorney General Tom Corbett says the perpetrators provided false info to PennDOT to get PA driver's licenses or vehicle registrations - then got Pennsylvania insurance policies for their vehicles.

The people charged include 17 New York residents and 6 from New Jersey.

Corbett estimates rate evaders' account for $12 to $15-million per year in insurance claims on Pennsylvania policies and that money directly results in increased premiums for all drivers in the state.

You can report rate evaders online by going to this link:

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