A growing crackdown on staged automobile crashes and insurance fraud across New York is adding even more pressure to already tense budget negotiations in Albany, where lawmakers are expected to approve a major fraud reform package sometime next week.
Governor Kathy Hochul has made auto insurance fraud one of the biggest unresolved issues in the late state budget talks. State officials say organized scams involving fake crashes, false injury claims and unnecessary medical procedures are costing insurers millions of dollars every year, expenses that eventually get passed on to drivers through higher premiums.
The issue landed back in the spotlight following the May 15 arrest of 24-year-old Basirah Jamalzada of Watervliet. State Police in Brunswick announced the arrest as part of an ongoing effort targeting insurance fraud operations across the state…