Fraud Claims Impacting Florida Residents
The topic of fraud is one that plagues the car insurance industry. The state of Florida has been especially hit hard by this type of fraud. In many instances, individuals who commit this fraud either fake car accidents or falsify or forge documents in order to get compensated by car insurance companies for car accident related repairs or medical expenses.
Car insurance companies are not the only victims of this type of crime because policy holders support the car insurance companies so they end up paying out for these fraudulent claims. Now, insurance industry insiders have said that Florida residents are being forced to pay a fraud tax because the fraud rate is so high in the state.
The reason behind this is that the cost of these fraudulent car insurance claims really does add up. According to statistics, from 2008 to 2010, it has cost about one billion dollars to cover bogus car insurance claims. This type of fraud really does hurt Florida tax payers and increases car insurance premiums for everyone which is very unfair to them. Most people approximate that the fraud tax costs policy holders in Florida about one hundred dollars each.
The economy is not doing well but that does not give people the right to file false car insurance claims. People perpetrate this crime in Florida because of the no fault insurance laws that they have in place. This means that it is easy to stage a car accident and get compensation because determination of fault is not a huge factor so insurance agents are more likely to pay out the claim very quickly.
People who commit this type of fraud end up focusing their attention on creating huge medical bill documents for themselves so that they can be reimbursed for their medical expenses. They seek out doctors and medical professionals who will write them phony medical documents saying that they are receiving medical treatments.
There really is no way to stop this type of crime from happening because it is hard to determine the difference between a real car accident and a staged car accident. Drivers need to be aware that most staged accidents involve a person saying that they were rear ended by another driver. They then claim to have whiplash, back, neck, and other injuries that might require thousands of dollars in medical care.
Drivers should make sure to call their insurance agents immediately after a car accident has taken place. A police report should be filed so that if a person intentionally caused an accident then law enforcement officers can be involved and build a fraud case against that individual.
It is a good idea for drivers to make sure that all procedures are properly followed when dealing with the aftermath of a car accident. Some people who commit fraud actually shake down the person that was driving the other car especially if they are uninsured. They try to extort money from the person by blackmailing them and telling them that they will call the police and report them for driving without car insurance coverage and causing an accident.
With more than a billion dollars being wasted on fraud claims in Florida, drivers need to find ways to escape the penalties of a fraud tax. This can be accomplished by making sure to sign up for discount programs offered by auto insurance companies and to always try to look for online insurance quotes to get the cheapest deal on car insurance coverage. Hopefully, the Florida attorney general will begin to crack down on this type of fraud and will prosecute those who are committing these acts so that justice can be served.
Source: Daily Rosetta
