There are few better examples of how good police work can improve a community than the results of a 10-year crackdown on auto insurance fraud in Lawrence.
Thanks to the work of a task force assembled by Lawrence police and the Insurance Fraud Bureau of Massachusetts, drivers in Lawrence have saved more than $68 million in auto insurance premiums since 2003. The average cost of insuring a vehicle in the city has declined from $1,613 in 2003 to $1,260 in 2011.
While the latter figure is still high, it is a substantial savings over the former rate. That’s real money staying in people’s pockets.
Lawrence was once the auto insurance fraud capital of the state, if not the nation. Fraud was an industry here supporting lawyers, chiropractors, physical therapists, the “runners” who brought them the new cases and, of course, the individuals who staged the phony accidents.
That all changed in September 2003, when great-grandmother Altagracia Arias was killed in a staged accident she helped plan.
The Eagle-Tribune reported at the time that, just hours before her death, Arias had offered several people at the Lawrence Senior Center seats in the car that was to be crashed. The price for a seat was $200 cash.
The crash at the corner of Ferry and East Haverhill streets was more intense than planned and Arias was killed.
Prior to that accident, these kinds of claims were routinely paid off and the high cost of doing business in Lawrence was recouped through higher insurance premiums for city residents.
But the death of Arias prompted police Chief John Romero to assign a number of his detectives to work with insurance investigators to crack down on phony accidents and fraudulent claims. Some 484 individuals were criminally charged and a number were convicted. The state passed an “anti-runner” law that made it a crime for lawyers and health-care providers to pay individuals to bring them clients.