Enterprise Rent-A-Car Tackles Rental Car No-Fault Fraud in New York City

NEW YORK– Feb. 25, 2011 – Enterprise Rent-A-Car, has announced new anti-fraud initiatives to help assist the National Insurance Crime Bureau (NICB) in fighting rental car “no-fault” scams plaguing the New York City area.  The effort is designed to address the rising incidence of individuals renting vehicles, staging accidents and then claiming medical injuries.

“This new initiative is being launched by Enterprise to address rising claims costs that increase the rate of renting a car for all New Yorkers. We are committed to doing all that we can to help keep car rental rates affordable, and uncovering fraudulent activity is important to achieving that goal.” said Andy Church, vice president and general manager for Enterprise Rent-A-Car in New York.
  
Enterprise has established guidelines to screen customers for suspicious behavior or activity that could signal a fraudulent rental. Under these new guidelines, renters may be referred to the company’s fraud detection team. Any information gathered during this process will be shared with local and federal law enforcement agencies as well as the NICB.

In addition, Enterprise has enhanced its claims handling practices to include increased scrutiny for fraud indicators and partnering with legal resources to address suspected fraudulent medical providers. Enterprise has also forged strong relationships with prosecutors’ offices and other local law enforcement to assist with these efforts.  

The NICB – a not-for-profit organization that partners with insurers/self-insured’s and law enforcement agencies to help identify, detect and prosecute fraud – reported this year that questionable auto accident claims across the U.S. increased 46 percent from 2007 through 2009.

In fact, the NICB reported that New York City topped the list of U.S. cities with questionable auto accident claims during that period.  In addition, the Insurance Information Institute reported at this year’s New York Insurance Fraud Summit that 20 percent of every New York no-fault auto claim involves fraud or abuse, amounting to $1,561 per claim.

“NICB recognizes the significant problem associated with no-fault insurance fraud within New York,” said Joe Wehrle, NICB president and chief executive officer. “NICB established its first Major Medical Fraud Task Force office in New York in an effort to counter the runaway fraud associated with staged accidents and other medical scams.  We remain committed to fighting this problem in concert with our member companies, law enforcement and the general public.”

Enterprise Rent-A-Car is owned by Enterprise Holdings, which, through its regional subsidiaries, operates more than 5,000 neighborhood and airport locations within 15 miles of 90 percent of the U.S. population. More than 39 Enterprise Rent-A-Car offices are located in New York City metro area.

Thousands of New Yorkers rent cars from Enterprise every day because they temporarily need a larger car for special occasions, family reunions or visiting friends, or because their vehicles are being serviced or repaired after an accident. Rental cars also are popular with environmentally conscious consumers who prefer to use mass transit or to drive smaller, fuel-efficient vehicles Monday through Friday, but require other transportation options for weekend errands and getaways. Often heavily discounted on weekends, frequently as low as $9.99 per day, Enterprise rental cars likewise are a popular option for those who simply can't afford to purchase and maintain a vehicle.

“We have offered convenient and affordable local car rental for many years,” noted Church. “As a result, we are proud to be an integral part of the diverse communities we serve, and we are doing everything we can to maintain these important neighborhood connections and services throughout New York City.”
 
In New York State, a person injured in a motor vehicle accident is automatically covered by the Comprehensive Motor Vehicle Insurance Reparations Act, commonly referred to as the no-fault law. No-fault insurance carriers provide reimbursement for a wide range of medical and health services, including initial medical evaluations, physical therapy, chiropractic care, acupuncture and diagnostic testing, when such services are actually provided and are deemed medically necessary.