Tuesday, November 8, 2011

Is Florida No-Fault Car Insurance Doomed Because of Claims of Insurance Fraud?

Across Florida, lots of people are filing fake car insurance claims and the insurance companies are arguing that this is due to no-fault insurance: the insurance industry does not like no-fault auto insurance policies. (For an explanation of P.I.P. coverage, read our earlier post, "What is PIP Insurance Coverage - and How Insurance Companies Just Lost Their Latest Try at Getting Florida to Gut PIP Coverage.")

It's easy to understand why. The insurance company does not investigate or question claims that it receives after an accident to try and place blame: instead, under Florida's no fault laws, when there is a car wreck, each policyholder is paid by their own insurance company for their injuries. You get hurt, your car gets damaged: you file a claim with your carrier.

It means that injured people in Florida get insurance coverage fast because there is no fight between two insurance companies about who is going to be responsible for paying the medical bills. That's a good thing.

However, apparently there are people who are taking advantage of the system in this bad economic time and the Florida insurance companies want to change the playing field. They don't want no fault insurance any longer.

According to a recent FoxBusiness news story, Florida leads the country in car insurance fraud. Criminals stage car crashes just to file the P.I.P. claims and the National Insurance Crime Bureau representative is quoted as saying that organized crime is involved. Apparently, there is an organization of car drivers and grifting medical clinics working together to systematically bilk millions from national insurance companies, all because of the no fault protections.

Reform? No, the insurance companies want to end no fault insurance in this country. Which means more fights before claims are paid for injured victims who are already suffering through no fault of their own. That is not good for honest Floridians who get hurt in accidents and need fast, dependable insurance help.

The fight to end Florida No Fault Car Insurance isn't over just because the lobbying failed with the Florida Legislature this spring. There is a huge public campaign backed with lots of power and clout, focused and fighting not to fix, but to end no fault coverage in this state. Be aware.

By Bryant Esquenazi on June 28, 2011 2:09 PM

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