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PIP Fraud on Front Burner

November 15th, 2011 by Mike Vasilinda

Governor Rick Scott unveiled a video detailing the kind of fraud gripping Personal Injury Protect insurance. The video shows passengers and the driver parking in the middle of a dark road, getting out, then another car hitting the first car. Flanked by law enforcement officers from around the state, Scott called on lawmakers to find a way to end fraud like that seen in the video that is costing consumers higher premiums. “People are fed up.” Says Scott. “And they are disappointed that people are taking advantage of an existing program that was set  up to reduce the cost of insurance and exactly the opposite is happening.”

After two weeks of touring the state, Scott still has no concrete ideas on a fix. The problem is that the number of claims has increased more than forty percent while the number of crashes in Florida is down and the number of cars on the road has remained stable. The fraud is estimated to cost almost a billion dollars a year.

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