Despite being enacted with the noble intention of reducing litigation surrounding Florida car accidents, the state’s no fault insurance law is also the cause of extensive insurance fraud. Dishonest individuals and crime organizations utilize the law to fraudulently scam money from the system. Since the law requires that every Florida motorist carry $10,000 in personal injury protection coverage, less investigation is conducted on each claim.
The following is an overview of the facts and figures surrounding no fault insurance fraud:

  • The Insurance Research Council estimates that one claim in ten made under Florida’s no-fault insurance system is outright fraud
  • The Institute estimates that one in three claims made under the law is exaggerated or overbilled
  • 27% of personal injury protection claims involve a visit to a pain clinic
  • 33% of personal injury protection claims involve an MRI, an expensive diagnostic test
  • 43% of personal injury claims include chiropractic care
  • Auto insurance fraud cost Floridians $658 million in higher annual insurance premiums in 2011
  • Florida ranks top in the nation for questionable auto insurance claims tied to staged accidents, with more than 3,000 in 2009
  • Florida had nearly twice as many questionable auto insurance claims tied to staged accidents as New York and California in 2009
  • For a typical 24-year-old male driving a paid off 2006 Honda Accord, he would pay between $96 and $656 annually for $10,000 worth of PIP coverage in Pensacola, as compared to $1,168 and $2,820 a year in Hialeah, an area well known for fraud
  • Lawmakers estimate no fault insurance fraud abuse cost the state of Florida $1 billion in 2011
For more information, contact an experienced Sarasota accident attorney. Complete our online submission form or call our office at (888) 409-3805 for a complimentary consultation.
Damian Mallard, Esq.
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Board Certified Sarasota Personal Injury Attorney
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