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Florida Has Highest Bogus Auto Insurance
Claims
According to the National Insurance
Crime Bureau, Florida is a haven for
questionable auto insurance claims.
Tampa and Miami were among the top five
cities in the United States that have
these auto insurance claims that are
quite often not what they appear. The
state beat out both New York and
California with 3,000 suspect auto
insurance claims – while the other two
states only had about half as many each.
This is a significant amount over the
other states and it has auto insurance
companies wondering what is going on in
the state of Florida.
The Illinois based company said that
staged accidents were the majority of
actions that trigger these auto
insurance claims. They get someone to
hit them and then they split the auto
insurance payout that they get. This may
seem like a great way for these
individuals to make some money for free,
but all it does is increase the auto
insurance rates for everyone who is not
involved in the scheme. Those that are
paying their auto insurance regularly
will bear the brunt of these false
claims.
These events are criminal in nature, and
Florida auto insurance claim
investigators have already arrested at
least 260 people in the state on auto
insurance fraud. Out of this they have
seen 156 convictions. The State
Department of Financial Services will
pay up to $25,000 for information that
leads to an arrest or conviction of
someone that is dealing in auto
insurance fraud. They suggest that if
you know of anyone that is doing this to
turn them in as you are the one that
will pay for their illegal behavior in
the end by dealing with higher auto
insurance rates.
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May 2010 Archives
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