Auto insurance crisis in Florida on a rise regardless of a crackdown


Auto insurance crisis in Florida on a rise regardless of a crackdownAuto insurance crisis is rampant in several states around the U.S.A, and Florida ranks high in this crisis count. Adding to the crisis of automobile insurance, fraudulent accident claim in the state is also on a rise, say experts. The insurance rates in the state is quite high, and the insurance companies or brokers warn to lock up the state each time, the insurance commissioner of Florida tends to draw back at further requests of hike in rate. It is estimated that around 30 to 40 per cent of motorists in the state have no insurance.

The legislature took several attempts to restore Florida’s “no-fault insurance program” by standing against a coalition of lawyers, doctors, health clinic owners, insurance companies, governors, and lawmakers. This powerful coalition is known to extract money through car accident injury.

It is estimated by the experts that motorists in Florida often pay around $50 for PIP, which secures a person hurt in accident with $10,000 for medical care. The problem lies with a section of people who have found out to trick the system forming an alliance with dishonest doctors and lawyers. In most cases, injuries are faked to pull the reimbursement of $10,000

The Governor Rick Scott has argued that motorists in Florida tends to pay around $900 million in PIP and the amount is likely to rise by around 60 per cent, if something is not done immediately.

Something needs to be done to put a check in the amount. Experts and observers of the situation are of the opinion to carry out more investigations and trials to put the problem on a check. However, what tends to be unanswered amid all worries about the legislator, insurance companies, governors, lawyers clinic owners, and doctors is how to obtain rates on auto insurance where a section of drivers are riding across the state uninsured.

A number of insurance companies or brokers often offer uninsured motorist coverage to the motorists not willing to take up an insurance coverage due to the hike in rates. This has been the trend that is followed, even with legislatures taking up measures to restore the condition of automobile insurance in Florida.