Fraud Still Costing FL Drivers Millions

Florida drivers are still paying millions due to fraudulent claims despite the recent crackdown on crooked attorneys and fraudulent clinics by Florida law enforcement.

According to the St. Petersburg Times, an industry report calculated that Florida drivers will be paying $658 million in premiums this year for fraudulent claims, which is a 7% increase from 2010, but maybe there is some good news on the horizon.

“The pace of deterioration has slowed. Hopefully, that’s a sign we’re no longer in this rapid escalation, and we’re about to flatten down,” institute president Bob Hartwig said in an interview Wednesday. “But leveling off … is no reason to celebrate. Maybe the problem is plateauing, but that doesn’t mean it’s solved.”

Hartwig presented the new numbers during the annual Florida Chamber of Commerce Insurance Summit in Orlando last week which gives further ammunition to Florida Governor Rick Scott and Florida’s CFO Jeff Atwater’s campaign to overhaul Florida’s Personal Injury Protection which allows $10,000 payout for medical expenses no matter who causes a car wreck.

Recent arguments over the increase in claims have pinned the insurance industry against local referral companies such as 1-800-ASK GARY and 411-PAIN, who refer individuals involved in a car wreck to personal injury attorneys and clinics. The insurance industry blames the increase in claims on fraudulent clinics, attorneys and staged accidents and earlier last week Atwater suggested a ban on such referral services. However, some attorneys claim the increase in claims is due to Floridians educating themselves on their right for medical treatment after the accident.

No matter what side comes out on top, the numbers don’t lie and with a Florida’s no fault costs being the third largest in the nation, Florida drivers can’t afford light duty in the fight against fraud.