Insurance fraud bumps the cost of everyone’s premiums. Insurance companies go out of their way to uncover fraud in order to control costs and; therefore, premiums. Insurance fraud was one of the points focused on at a recent insurance summit held on the campus of the University of Miami.
Personal Injury Protection rates, the no-fault medical coverage that all drivers are required to carry in Florida, have increased by 60 to 70 percent in just a few years, according to Monte Stevens of the Florida Office of Insurance Regulations. The spike has nothing to do with an increase in accidents. While the number of wrecks has dropped, Florida auto insurance agencies are paying $1 billion more in claims over the same period.
Why? One story sums it up. During a South Florida accident, a driver wondered why there was one more person in the other car when the police arrived than there was when the accident happened. Surveillance video provided the answer. After the wreck, a bystander had jumped in the car and suddenly had pain from injuries ”sustained” in the accident.
Fraud claims like that are becoming widespread. Florida legislators are trying to address loopholes in the system and stiffen penalties in order to deter perpetrators, but until then, honest drivers will continue to be faced with higher Florida car insurance quotes to cover the theft.