Accident fraud is costing Florida drivers nearly an extra billion dollars a year in their personal injury protection insurance rates, according to Gov. Rick Scott. He's helping lead the push to reform the state's PIP system.
Gov. Scott was fired up Wednesday as he spoke to supporters of
insurance reform at the state Capitol. He argued the higher insurance rates resulting from fraud are like a tax. It's estimated Florida drivers pay 56 percent higher auto rates compared to other states.
Personal injury protection rates have been climbing about 30 percent a year in Florida even though there's been a 12 percent reduction in car crashes over the past five years.
Police blame drivers in organized crime groups for staging accidents and then running up medical bills to the $10,000 limit allowed by the state's no-fault law.
Gov. Scott urged the crowd to put the pressure on lawmakers to pass reform legislation.
"This is how laws get changed. You show up and you let your legislators know what you want. You are sick and tired of a billion dollars a year of fraud. You're tired of it. You're tired of scammers taking advantage of you. You're tired of attorneys taking advantage of you. Enough is enough. A billion dollars a year. We need to change this."
Florida Chief Financial Officer Jeff Atwater joined Scott at the rally. He said drivers with great driving records are getting hammered by rising auto premiums and that's not fair.
"A 40-year-old, perfect driving record, in Jacksonville, Florida in the last two years, 40 percent increase in their PIP coverage. Orlando, 58 percent. Miami, 80 percent. Tampa Bay, 81 percent."
Cydnee Knoth of Tampa expressed frustration at seeing her auto insurance continually go up even though she's a good driver.
"Every year I see my insurance rates go up on my auto insurance and, despite my excellent driving record, the rates go up every year. Listed on my driver's license is 'good driver.' I have been affected by PIP and my son has been affected by PIP. We need to have this changed."
The Florida Chamber of Commerce calls PIP reform legislation its top priority this year. David Hart says the legislation must crack down on staged accidents, fraudulent claims and attorneys' fees.
"Honest Florida families and businesses continue to take the brunt of this unresolved billion dollar problem. Florida cannot wait any longer for relief from the expense of fraud and litigation abuse in the PIP system. The time for PIP reform is now."
The business lobby group Associated Industries of Florida is also backing reforms.
"Sadly, Florida is number one in fraud among any of the 50 states. It's time for Florida to take serious and permanent action to help its Florida consumers and its Florida businesses," said AIF President and CEO Tom Feeney.
A House committee Wednesday passed a bill that cracks down on PIP fraud by a 10 to 5 vote. The measure still faces two more committee votes before it can head to the House floor.
Opponents of the House bill contend it would restrict people's choices on which doctors they want to see, as well as the timeline for their treatment.
A group called the Florida Consumer Action Network says the Senate's version is better because it looks out more for consumers.
posted by Jim Valek on
Mon., Jan 30th, 2012 in
Insurance Company Industry News
Insurance Fraud
When You are involved in an auto accident, there are some warning signs to look for that indicate you have been the victim of a staged accident.
Staged Auto Accident Warning Signs:
- The car in front of you slammed on it's brakes for no apparent reason.
- The car you have hit is a large older model car
- There are at least three people in the car and they are anxious to leave the scene of the accident before the police arrive.
Here's What the Law-biding Driver can do to Avoid Being the Victim of a staged accident:
- Don't tailgate! Criminal drivers view tailgaters as prime targets.
- Be a defensive driver. If another driver suddenly darts in front of you slow down and nrease the distance between your vehicles.
- Get names and addresses of independent witnessess at the accident scene. These witnesses may be able to verify the accident looked like a setup.
- If a collision seems to be a set up immediately advise your insurance company and law enforcement officials
How Can You Help Fight Auto Insurance Fraud?
You can help fight insurance fraud. Join law enforcement agencies, prosecutors and the insurance industry in bringing these costly and sometimes violent crimes under control.
Don't be a victim. Drive defensively, an thoroughly document all auto accidents in which you are involved.
If you know of insurance fraud, report it to our auto fraud hotline at 1-888-662-6616.
Let your family, friends and neighbors know that insurance fraud affects everybody in the form of higher insurance rates. Encourage them to get involved in the fight against auto insurance fraud.
posted by Jim Valek on
Tue., Jul 12th, 2011 in
Be prepared
Insurance Fraud
Safety
There are all kinds of
Florida Auto Insurance fraud, including staged accidents, inflated medical bills, phony injuries, owner give-ups, false repair bills and claim padding.
Millions of people fall victims to staged accidents every year without realizing it. These apparently simple fender benders are actually premeditated crimes, involving organized rings of doctors, lawyers and body shop owners.
Major Categories of Auto Fraud
Staged Car Accident.
A conspirator's pulls in front of an innocent driver's car and stops suddenly, causing the innocent driver to rear-end the conspirator's car. Sometimes a second conspirator's car providing the "excuse" for the sudden stop. The innocent driver believes he is responsible for the accident.
Typical Victims of this trap are usually driving alone in late model or expensive cars. Often a large older sedan is used by the criminal driver and two or three passengers will be riding along. Invariably the victim is later contacted by the criminal driver's lawyer, and the victim's
insurance company is expected to pay large, fraudulent medical bills for the driver and all the passengers in the car.
Owner Give-Up.
Car owners who arrange to have their cars "stolen" and disposed of so they can collect insurance money. It is estimated that about 15 percent of all vehicle theft claims fall into this category.
Auto Insurance Claim Padding
Car owners increase the amount often otherwise legitimate claim to receive more money than they are due. It's estimated that 10 percent of all claims are at least partially fraudulent.
posted by Jim Valek on
Tue., Jul 12th, 2011 in
Be prepared
Insurance
Insurance Company Industry News
Insurance Fraud
