All posts filed under
No-fault Auto Insurance
Drivers everywhere continue to enjoy the benefits of low gas prices, and what are they doing to celebrate? They are driving more. It’s less costly to take a road trip now, rather than fly to another destination, so more drivers are taking to the streets. More cars on the road increase the number of traffic crashes which, in turn, translates into higher auto insurance rates.
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.
In 2012, changes were made to Florida’s No-Fault Auto insurance law, also known as Personal Injury Protection (PIP). Those changes were set to launch in January 2013, yet the law barely left the parking lot.
In March, a group of medical providers affected by the way the new law paid out benefits filed a court injunction to block it. In October, Florida’s First District Court of Appeals reversed the injunction, and the changes finally got ignition. The medical providers countered by requesting a rehearing, which was turned down by the appeals court this week.
Want to know who to blame for rising auto insurance rates? I can give you names. Actually, the Florida Dept. of Insurance Fraud can give you names—of the arrests made in just one month of those who make a living by filing fraudulent insurance claims.
If you wonder why insurance fraud seems to be rampant in Florida, it could be because it’s organized—as in “organized crime.” This is no secret. If you look at The PIP Source produced by the state Division of Insurance Fraud, you’ll see many arrests for auto insurance fraud involve the same clinic, family members or occur on the same day. The National Insurance Crime Bureau (NICB) gives Florida its #1 ranking for having the most questionable claims, which are claims that raise red flags.