Auto insurance reforms may be working, say regulators
In 2012, Florida lawmakers passed legislation to target the fraud and abuse that was driving up the cost of auto insurance. Today, the Florida Office of Insurance Regulation released a report indicating the reforms may be starting to work.
The overall number of insurance claims related to Personal Injury Protection (PIP, also known as no-fault) are declining and so is the overall cost of each claim. Because insurance rates are based on the cost of claims, this is positive news.
Legitimate auto insurance claims from injuries are not the problem; it’s the fabricated claims and inflated medical bills associated with what was considered a PIP “benefit” tapped to enrich some at the expense of the multitudes of honest, insurance-paying drivers.
It has long been known that South Florida and the Tampa Bay metro were popular breeding grounds for the organized crime associated with staged auto accidents and phantom medical clinics that bill for procedures never actually administered. Well, you can certainly guess where the biggest drops in the frequency of PIP claims occurred.
Here is a chart to prove your guess correct:
Click on the image for a larger view.