Jim Gibbons, Nevada state Governor, has announced that he will form a task force to fight auto theft and organized insurance fraud in his home state. The Nevada auto insurance industry and its insurance premiums have been greatly affected in the past decade due to organized crime throughout the state, from criminal auto-theft rings to the almost daily defrauding of Nevada auto insurance companies. Insurance scams run rampant in Nevada’s two biggest cities, Las Vegas and Reno, with the scams often involving numerous criminals and executed in situations in which the victim may never come out victorious.

Just last year, Las Vegas ranked first in auto-theft rates for the entire country, and the Governor would like that statistic to be erased. Nevada families also pay, on average, $300 a year extra due to auto insurance fraud. Vehicle arsons, commonly associated with auto insurance fraud, rose 50% from 2001 to 2006. In decreasing all of these negative statistics, the task force’s work will greatly benefit the Nevada auto insurance industry and the common citizen who will be purchasing much cheaper auto insurance.

Gov. Gibbons has said that the panel’s first job will be to determine the scope of how greatly these two things have affected Nevada auto insurance statewide. Their effect on consumers will be determined and potential solutions will be reviewed. The task force, comprised of insurance industry, collision repair, legal and police representatives, was announced after Mr. Gibbons toured the Vehicle Investigations Project for Enforcement and Recovery, or VIPER. Based in southern Nevada, VIPER uses bait vehicles to trap would-be car thieves by equipping the cars with silent alarms and GPS systems. When stolen, the police are notified immediately and the car is tracked down. The new task force will use similar means to help eliminate the auto-theft problems of Nevada’s larger cities.

The task force has not been completely assembled as of yet, the Governor has said, but he intends to include representatives from the federal, state, and county agencies. The one thing that Nevada auto insurance policyholders are able to rest assured about, though, is that premiums will decline due to the decreased risk of theft and fraud to the insurance companies. Once again, the insurance industry in the state of Nevada is on a positive track.