With insurance fraud rates spinning out of control in the Sunshine State, a new bill attempts to cut back on the reality of what some have only heard of in a popular commercial.
With uncertainty remaining in the economy and increasing debts thinning the pocket books of many Americans, people are turning to other means of getting the financial backing they need. Unfortunately, a rising number of people are turning to insurance fraud in order get them out of a pinch, but in the long-run these actions are digging all of us into a deeper hole. Insurance Fraud occurs when someone purposefully deceives an insurance company in order obtain money without legal claim. People will even over exaggerate their claim with hopes of receiving a higher settlement. No place in country is this more rampant than in Florida; burdening Floridians with an automobile fraud tax in excess of $1 billion dollars annually.
According to the Car Insurance Crime Bureau, roughly 2,000 staged accidents occurred in Florida in 2009, a trend which continues to grow. One of the reasons this happening is due to people are taking advantage of Florida’s no-fault law. The no- fault law is a piece of legislation which requires drivers to carry $10,000 in personal injury protection (PIP) to cover the cost of bodily injuries in case of an accident, no matter who was at fault. When it was first in enacted in 1972, it was meant to ensure that people were thoroughly protected, but now has turned into a haven for criminal conspiracy. From 2008 to 2010 PIP claims increased 35.7%. With the average Florida resident paying $736 for automobile insurance premiums, compared to the 471 nationwide average, the Florida Office of Insurance Regulation warns this epidemic of fraudulent claims is certainly unsustainable, and could possibly lead to an automobile liability insurance availability crisis in the future.
Fortunately for Florida, there are people who will not stand for this anymore. The state government has recently met with proposed legislation to make changes to the No Fault law. These changes deal with the semantics of attorney fees and with the law as a whole. Individuals pursuing more of an active role in this fight against automobile fraud are part of an organization known and the Gear up Florida coalition. This coalition is comprised of law enforcement agencies, business associations, and even Florida residents, who work together to curtail these crimes to hopefully inhibit anymore skyrocketing insurance premiums. Floridians know that changes in the no- fault bill and preventative measures for automobile insurance fraud must be made in 2012.
Visit the Gear Up Florida website or contact the coalition at (850) 224-0174 for more information.
