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As the New York economy fell into a major recession along with the rest of the world, the number of auto insurance fraud incidents in New York has risen dramatically, costing drivers millions of dollars each year in excess auto insurance premiums. And according to The Coalition Against Insurance Fraud, the number of people that believe committing an auto insurance fraud is an acceptable practice is also on the rise.

The statistics are overwhelming: Car give-ups - abandoning a car and reporting it stolen - rose by almost 33 percent in 2008 in New York, according to the state’s fraud bureau.

Insurance fraud normally increases in a troubled economy. The credit crunch, subprime meltdown, higher gas prices and general economic problems have led more drivers to seek a bailout through insurance money,” said Dennis Jay, executive director of the Coalition Against Insurance Fraud. “They’re literally being driven to desperation.” NY insurance rates were on the rise last couple of years, but due to increase in fraud, experts expect that New York Car Insurance rates will continue to increase for at least a year more.