Floridians are under threat on a daily basis as they are being increasingly targeted by fraudsters who use them as a pawn and manage to collect millions each year. This is costing the average Floridian as much as $100 extra by way of auto insurance premiums every year. The PIP coverage is used as a tool by these fraudsters and efforts are under way to protect the residents of Florida and also to give the necessary tools to the law enforcement officers to stop these frauds before they occur.
The Sunshine Coalition to Erase Fraud had come together with the Senators and Representatives last month and introduced several anti-fraud measures with stiff penalties to stop these fraudsters from going on a swindling spree. This is a statewide alliance of insurers, consumer advocates, as well as government agencies that are pursuing various legislative reforms in the interests of the consumers and to put a stop to the rampant menace of staged accidents which are looting the auto insurance companies. The no-fault system is being misused by these fraudsters in Florida costing the insurance companies millions and also causing a raise in the auto premiums which the Floridians are burdened with.
There are thousands of fake accident claims each year due to the widespread and organized fraud rings that are operating in Florida. There is always the danger of motorists getting killed or injured in these staged accidents. In yet another trend that has emerged, the fraudsters from these crime rings badger the real victims of a car crash by getting them treated in some of the shady clinics and by unscrupulous doctors without the knowledge of the victims.
If the current trends continue these fake accidents and fraudulent claims could easily add another $1 billion in Florida’s no-fault system by the end of this year. This is as per the information provided by the Insurance Information Institute. The institute also adds that the costs of auto insurance frauds could be more than $1.5 billion between 2009 to 2011 if nothing is done to control this menace quickly.
Florida is the national hub for PIP fraud and is leading compared to the other states, as per reports from the National Insurance Crime Bureau. The state also accounts for about 30% of the questionable claims that have involved staged accidents. The efforts of Jeff Atwater, Rep. Boyd, and Sen.Bogdanoff in protecting consumer interests have been appreciated by the Sunshine Coalition to Erase Fraud.
