Fake car crashes plummet

The number of auto accidents staged in Florida so an insurance claim could be filed has fallen by a lot more than half because the laws governing personalized-damage safety had been reformed, according to a new report.

Reviews of PIP claims involving accidents that seem to have been intentionally induced fell from 712 in 2012 to 328 last 12 months, the nonprofit Nationwide Insurance coverage Crime Bureau discovered in a examine.

Total, questionable PIP claims filed in Florida dropped by nearly 8 % in a year, reported the bureau, which partners with insurers and police.

“We are encouraged by the decline in questionable claims that we’;ve witnessed recently, but by no implies are we declaring victory in Florida,” mentioned Joe Wehrle, the bureau’;s president and CEO. “Florida stays a hotbed for fraudulent activity.”

The 2012 law calls for those involved in car crashes to look for therapy inside 14 days and limits non-emergency medical claims to $ 2,500. The law also established stronger penalties for medical suppliers who commit PIP fraud, including a 5-year license suspension and a 10-yr restriction from PIP reimbursement.

2 insurance coverage groups said Monday that the research displays the law is helping lower abuse that drives up premium expenses.

“I feel it is quite promising,” stated Michael Carlson, executive director of the Personalized Insurance coverage Federation of Florida, whilst cautioning that “we’;re even now very early in the approach.”

So far, the law is helping “drive down unchecked fraud and abuse,” agreed Donovan Brown, the Tallahassee-based state government relations counsel for the Home Casualty Insurers Association of America.

Premiuims for PIP coverage are projected to drop by an average of 13.2 percent, based on on a evaluation of 20 insurers that provide coverage for much more than 75 percent of the Florida market place, the Florida Office of Insurance Regulation stated in January.

dgehrke@tribune.com or Twitter @donnagehrke

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