Florida has a new law to combat insurance fraud, but so far it isn’t lowering rates.
Personal Injury Protection fraud was reportedly rampant before the state legislature passed PIP reform. The law took hold in July, but so far drivers are paying the same for coverage. Chief Financial Officer Jeff Atwater says rates should come down next year, but if they don’t… insurers beware.
Atwater: My hope would be early next year you’ll be able to see the evidence and by mid to late next year rates should be coming down.
Reporter: and if they don’t?
Atwater: If they don’t, you know there are going to have to be some people who give us some real answers.
Preliminary reports suggest PIP coverage could be reduced by as much as 20 percent, because people who used to stage auto-accidents and make fraudulent medical claims will no longer be able to get away with it.