Auto insurance companies: false claims on the rise - KTTC Rochester, Austin, Mason City News, Weather and Sports

Auto insurance companies: false claims on the rise

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ST. PAUL, Minn. (AP) -- Auto insurance companies say false and exaggerated injury claims are on the rise in Minnesota.

The National Insurance Crime Bureau says suspicious personal injury claims have tripled since 2008. Minnesota ranked tenth in the nation in 2011 with 53 such claims.

Mark Kulda of the Insurance Federation of Minnesota says crackdowns in other states are driving insurance fraudsters to Minnesota. Kulda tells Minnesota Public Radio News there's evidence organized crime is setting up fake clinics, staging auto accidents and submitting bills for accidents that never happened.

Insurers say fraudulent claims mean higher premiums for the rest of us.

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