Florida Auto Insurance Fraud

June 11, 2020

By taking advantage of soft regulations in Florida, auto insurance fraud has become very familiar. As personal injury protection claims are inflated, the cost of insurance will also increase. Thus, policyholders will pay a higher rate of insurance. As a matter of fact, no-fault laws are introduced to lower the cost of insurance. It is intended to keep the claims out of court. As per the no-fault laws applicable in Florida, insurers should cover the injury costs regardless of who is at fault.

Burden on insurers

Insurers should pay $10,000 per person under Florida’s law. As the insurer should pay regardless of the injury, staging an accident has become very common in Florida. Scammers utilize this opportunity, and the number of claims is increasing at a continuous pace. Thus, it led to an increase in average no-fault claim costs. It is noticed that criminal groups have set up rings comprising of fraud clinics fraudulent doctors and lawyers. They are instrumental in filing fraudulent claims under the PIP law.

Efforts are made by organizations such as the Insurance Information Institute and the Sunshine Alliance to limit the fraudulent practice. It has suggested bringing sound regulations and substantial penalties. Steps should be taken to prevent fraudulent claims from medical mills. Fraudulent insurance claims plague Florida's insurance market.

No-fault auto insurance

Insurance Information Institute examines no-fault auto insurance. It studies the implementation of several states. If you are a victim of the no-fault auto insurance, you should be able to recognize the signs of a staged accident.

If you feel that you are involved in an auto accident and do not get the feeling, you should understand that it is not an accident at all. Criminals are devising staged plans to siphon off funds from the insurance companies. In this process, they are filing fake insurance claims.

There will be attempts to target innocent drivers to produce staged auto accidents. People who are committing fraud can cause serious injuries or death. There are other ways to commit fraud.

Commitment of fraud

Various individuals might commit fraud. These parties include policyholders, third-party claimants, and professionals. Experts will provide services and equipment. Some of the common fraud practices include padding, inflating claims, and misrepresentation of facts.

They might submit a request for injury or damage which never took place. Some people will make requests for services that were never rendered. It is found that fraudulent claims are more prevalent in urban area. The claims will be more in areas where the number of vehicles is high. Such kind of frauds is more in areas where affluent people live.

Commercial vehicles, new vehicles, and rental vehicles will be targeted as they will be very much insured. Senior citizens and women driving alone are targeted. There will be a less likely confrontation with these weaker sections. Organized crime is present in states where ‘no-fault’ auto insurance is implemented. There are 12 states in the US that are implementing the ‘no-fault’ auto insurance. Florida tops the list.

How to overcome insurance fraud

You should perform the best steps to avoid and overcome staged accidents. If you are aware of the ways to which they are committed, you can take measures to prevent these scenarios. In the case of swoop and squat, two vehicles will be driven by criminals, and the victim will ride the other. The criminals will plan the accident such that the victim will collide with the criminal’s vehicle. As one of the criminal’s vehicles is not found after the crash, the victim has to pay the penalty even though he is not the reason for the accident.

Through the panic stop attempt, the victim’s attention will be diverted, and the victim will apply brake suddenly through which his car will hit the rear part of the criminal’s vehicle. Thus, various tactics will be implemented by fraudsters.

You should be warned of certain circumstances. People who suddenly appear at the accident site and suggest you visit a particular clinic or consult an attorney will be part of the criminal scheme. Some physicians will insist you to file a personal injury claim after the accident even though you are not hurt, are part of the scamming group. In some cases, tow trucks will arrive at the spot without calling anyone.

If you are involved in an accident and suspect fraud, you should call the police immediately. You should get a police report with the officer’s name. You should contact the insurance agent at the earliest.