SUV Insurance Fraud on Rise Along With Gas Prices

Insurance fraud is surging as record-high fuel prices spur cash-strapped New Yorkers to fake thefts of their gas-guzzling cars and SUVs.

Investigators from the state Insurance Department have busted 88 alleged scammers in New York City so far this year, compared to 77 during all of last year.

And nearly two dozen of this year's arrests involved fuel-hungry SUVs, four of which were found in flames.

Former NYPD detective Larry Milanesi, who has extensive experience investigating insurance fraud, said the trend was reminiscent of the 1970s, when the gas shortage led many owners to torch large cars along the Belt and Cross Island parkways.

But while gas is widely available now, the deep discounts and generous financing available on new SUVs means motorists who want to unload their gas guzzlers can't find buyers, he said.