Fraudulent claims on the rise in Minnesota, auto insurers say


Auto insurance companies say false and exaggerated injury claims have surged in the state, Minnesota Public Radio reports. Insurers say the fraudulent claims drive up premiums for everyone else.

"Your insurance premiums are being stolen by organized crime, including the Russian mafia," Mark Kulda of the Insurance Federation of Minnesota told MPR. "There is evidence they're here, setting up fake clinics, engaging in staged auto accidents or even just submitting bills for accidents that never even happened."

The insurance industry wants new laws that make it easier to prosecute insurance fraud.

The National Insurance Crime Bureau released new data that shows suspicious personal injury claims have surged 231 percent in Minnesota since 2008. The state ranked tenth in the nation in 2011 with 53 fake claims.

Florida, California and Michigan led the country in insurance fraud.

Read the full report below:

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