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Amid rising insurance fraud, PIP changes may be coming

by John Kennedy | August 16th, 2011

With car insurance fraud skyrocketing in Florida, Gov. Rick Scott cited a need Tuesday to revamp the state’s four decade old requirement that motorists carry Personal Injury Protection (PIP).

Driven in part by widespread accident fraud, auto insurance premiums have spiked by more than $900 million over the past three years, Insurance Commissioner Kevin McCarty told Scott and the Cabinet.

McCarty blamed “fraudsters and hucksters” for much of the problem. The state’s Divison of Insurance Fraud reported Tuesday that PIP fraud referrals have more than doubled since 2007 to 6,699 this year.

Scott said it’s clear that the state’s PIP law is in need for an overhaul by lawmakers next year — with McCarty charged with coming up with proposals to put before lawmakers in coming weeks.

Motorists must carry $10,000 PIP policies. But business groups and insurance companies have long fought the requirement. PIP legislation collapsed last session in a predictable tug-of-war between insurers, consumers and medical organizations.

Scott, though, backed by Chief Financial Officer Jeff Atwater, said Tuesday that changes need to be made, although neither of the officials said they knew what steps should be taken.

“Are we doing things through regulation…that is allowing fraud to happen, that normally wouldn’t happen?” Scott said.

 

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5 Responses to “Amid rising insurance fraud, PIP changes may be coming”

  1. Michael A Says:

    Driven in part by widespread accident fraud, auto insurance premiums have spiked by more than $900 million over the past three years, Insurance Commissioner Kevin McCarty told Scott and the Cabinet.

  2. Rob Says:

    I say change the ins. law to having a CHOICE of having auto ins. at all. Every yr. mine goes up and it’s always because of those who don’t have any ins., crooks, and my zip code. I believe I shouldn’t pay more every yr. as my driving record is perfect. I have not cost ANY ins. co. anything, period. Furthermore the deadbeats and crooks won’t stop what their doing. I keep hearing; “Ins. is a shared risk” from ins. cos. I’m doing all the paying & getting NOTHING for my hard earned $$. I say KILL mandatory auto ins. OR make it much more affordable. I’m a senior cit. on a fixed income.

  3. Lisa Wu Says:

    McCarty blamed “fraudsters and hucksters” for much of the problem. The state’s Divison of Insurance Fraud reported Tuesday that PIP fraud referrals have more than doubled since 2007 to 6,699 this year.

  4. Lisa Wu Says:

    Insurance Commissioner Kevin McCarty told Scott and the Cabinet.

  5. thomasnorthup Says:

    Consider dropping collision and/or comprehensive coverages on older cars. Search online for “Auto Insurance Clearance” If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective.

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