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Florida Car Insurance Fraud Could Be Limited By Laws

Florida car insurance fraud is serious business, as it leads the country in people trying to take advantage of policy coverage for personal injury claims. Three of the top five American cities for car insurance for fraud, and the total damage over a recent three-year period was roughly double that of New York, the next leading state. So Florida legislators are trying to change that, and the results could drive down car insurance quotes in the Sunshine State.

Targeting Doctors to Reduce Insurance Policy Costs

Doctors are duty-bound to help the injured, but in Florida, legislators argue that some of them are engaged in fraud, treating people for non-existent injuries for insurance payouts. In other cases, questionable diagnoses may be used for personal injury cases.

So doctors would not be able to bill car insurance companies in Florida for patients with claims flagged as potentially fraudulent. A benefit for consumers, however, is that patients would be able to get discounts if they used doctors' offices with strong track records, reports the Sunshine State News.

The state will also increase the staffing on auto insurance fraud investigation teams, which will help to break up the numerous rings that conduct accidents where an innocent driver is to blame. They will be trained, as will police, that all occupants must be listed at the time of an accident

Potential Issues for Florida Car Insurance Buyers

The possibility of personal injury coverage caps are likely to lead to less expensive Florida car insurance quotes, and so too will increased fraud investigation teams. Moreover, reduced fraud benefits the healthcare system. However, no system is perfect, and personal injury attorneys may have a point about capping benefits to those hurt in car accidents.

The establishment of an upper limit may not seem like a problem, especially if the number seems extensive at say $1 million or $5 million. But keep in mind that in many cases, these sums pay out for lost wages and other income that someone who is severely injured may not be able to obtain due to disability.

In the end, however, that's just one aspect of the bills being sponsored, and the others should help reduce fraud and cut Florida car insurance rates as well.