FLORIDA – Fake injury claims cost Florida car insurance customers a billion dollars a year.
http://liarcatchers.com/insurance_fraud.html
Fake injury claims cost Florida car insurance customers $1 billion a year. That statistic from the Governor’s office led legislators to crack down. The law is changing, and it might save you some money.
Florida auto insurance customers are required to purchase Personal Injury Protection or PIP coverage. One insurance agent told us the level of PIP fraud in the state is so bad, he compares it to organized crime.
Personal Injury Protection coverage pays up to $10,000 in medical bills, no matter who’s at fault in an accident. Criminals have created a cottage industry of staged wrecks and sham clinics to make false claims.
The fraud is epidemic in south Florida, but it happens in northwest Florida too. Dorothy Henderson of Ft. Walton Beach said, “I’ve heard of people hitting their brakes and letting someone run into the back of them, so they can get paid. So many times, yeah.”
The insurance industry says PIP fraud adds $50 to the average person’s premium. Bridget Orzechowski says, “I think it’s horrible, but what can you do?”
A new law says people can only make PIP claims after being treated by doctors at hospitals, which would mean they can’t get the $10,000 unless the doctor says they have an “emergency medical condition.”
People with non-emergency injuries can get up to $2500. By October, insurance companies must file for a 10% reduction in premiums.
Currently, there’s no penalty for companies that don’t cut premiums. They are only required to explain their decision to state regulators.
“No, absolutely not. They’re not going to lower rates,” said Trey Wallace, citizen, as he shook his head and smiled.
A spokesman for the Governor says Rick Scott is confident insurance companies will lower rates. He believes the industry is so competitive, they’ll have to
