KOREAN AMERICAN ASSOCIATION OF QUEENS JOINS COALITION TO COMBAT AUTO INSURANCE FRAUD AND SKYROCKETING PREMIUMS
Community Leaders Partner with Citizens for Affordable Rates to Expose “Staged Crash” Scams That Are Driving Up Costs for Honest Families
NEW YORK – The Korean American Association of Queens, one of the borough’s most respected community organizations, has joined Citizens for Affordable Rates (CAR) in the fight to protect hardworking families and small business owners from New York’s escalating auto insurance affordability crisis. The group is sounding the alarm on a major, but often overlooked driver of rising premiums: staged car crashes and fraudulent claims that force law-abiding drivers to pay more.
“For too long, scammers have been allowed to exploit the system – faking accidents, filing false claims, and driving up insurance rates for every honest driver in our community,” said Hyun Lee, President of the Korean American Association of Queens. “Our members see these crimes happening on our streets, and it’s one of the main reasons families can’t afford car insurance anymore. We’re proud to join Citizens for Affordable Rates to expose this abuse and demand that Albany act to protect hardworking New Yorkers.”
Across New York, auto insurance premiums have climbed nearly 40% above the national average, leaving working families to choose between paying for essential coverage or meeting basic household needs. Fraudulent and exaggerated claims – including staged car crashes, fake medical bills, and phony lawsuits – are among the top factors driving this surge.
Citizens for Affordable Rates (CAR) has been building a broad coalition of community and business leaders across racial, ethnic, and geographic lines – united in calling for anti-fraud reforms, stronger enforcement, and fairer insurance rates. With KAAQ’s membership, the movement now includes influential voices from New York’s Korean American, South Asian, Hispanic, and immigrant communities.
“Car insurance fraud is not a victimless crime,” said Walter Chi, spokesperson for Citizens for Affordable Rates. “Every staged crash, every fake injury claim, means higher premiums for a delivery driver, a nurse, a shop owner – the everyday people who keep New York running. The Korean American Association of Queens understands this reality, and their leadership in this fight sends a powerful message: our communities have had enough.”
Based on the 2023 report from the New York Department of Financial Services (DFS), 75% of all reported fraud cases were suspected to be no-fault insurance frauds. The most common types of this fraud involved staged car crashes and inflated medical claims. No-fault fraud occurs when individuals manipulate the no-fault insurance system, where each driver's own insurance company covers their medical and wage costs after an accident, regardless of who was at fault.
The Korean American Association of Queens, established more than 50 years ago, serves as a central voice for the borough’s Korean community, offering social services, cultural programming, and advocacy for immigrant families and entrepreneurs. Its decision to join CAR reflects a shared commitment to accountability, fairness, and affordability.
About Citizens for Affordable Rates (CAR)
Citizens for Affordable Rates (CAR) is a coalition of citizens, advocates, and organizations dedicated to tackling the root causes of high insurance premiums in New York. Through advocacy, education, and policy reform, CAR is committed to building an affordable and dependable insurance system for all. To learn more, please visit: www.citizensforaffordablerates.org