Bringing auto insurance in Florida to a grinding halt


09Residents of the state of Florida have been at the receiving end because of the auto insurance fraud that has been steadily on the rise.  Floridians are struggling to deal with the rising cost of auto insurance bills even as the evidence is piling up.

Auto insurance fraud is the highest in the state of Florida – the highest in the entire nation.  As per the reports from the National Insurance Crime Bureau, three cities have topped the list when it comes to fraudulent claims such as staged accidents etc.  All three cities are in Florida – Tampa, Orlando, and Miami.  Between 2007 and 2009, around 3,000 staged accidents had been reported.  This was twice the number that had been reported by New York – the state which was in the No. 2 spot.

These have come by as astonishing facts as Florida was the state that was leading in terms of arrests and convictions through Florida’s Division of Insurance Fraud.

As per the law in Florida, drivers need to carry a minimum insurance coverage of $10,000 on Personal Injury Protection (PIP) coverage as well as $10,000 in property damage liability coverage.  The PIP coverage will provide $10,000 per accident on the medical costs irrespective of who is at fault.  The whole aim of having the PIP was to eliminate lawsuits.  However, consumers are complaining that they are being pursued by attorneys even if no injuries are being reported.

If you want to know who picks up the tab – every resident of Florida who has an auto insurance policy or a car in the driveway.

However, the chief financial officer from Florida feels that the residents should not be made to foot the bill in order to line the pockets of these criminals.  He is also determined to put an end to this costly crime.  He is working closely with the law enforcement and Miami-Dade State Attorney, Katherine Fernandez Rundle and plans to put these criminals and perpetrators of PIP frauds behind bars.  He is also planning to propose some of the following policy solutions in the current legislative assembly session.

  • Strengthening billing practices
  • Penalizing those convicted in auto insurance fraud
  • Officers to list all passengers while filing accident reports
  • Legal costs to be addressed

Efforts have already been initiated by the legislative leaders in order to help Floridians retain their hard-earned money and thereby put an end to these losses that they suffer.