With auto insurance fraud becoming a major concern in Florida, a number of law enforcement agencies, business associations and state resident groups have come together to form the Gear Up Florida coalition. The coalition aims to combat fraud in the state and help protect consumers from the havoc it can cause on their finances. Insurance prices in Florida have been rising due to staged car accidents in recent years. The coalition believes that the primary cause of this lies in the state’s no-fault auto insurance laws.
Though insurers often get the blame for raising premiums, the coalition does not target the insurance industry as a major part of the problem. According to Tammy Perdue of the Associated Industries of Florida, the current no-fault auto insurance laws in the state has placed a “fraud tax” worth more than $1 billion on consumers statewide. The Florida Office of Insurance Regulations claims that the issue is so dire that it may lead to a shortage of auto insurance policies as insurers may stop doing business in the state.
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Florida is currently the leading state in terms of staged car accidents in the U.S. These fraudulent events have put a major financial strain on the insurance industry, which is being passed on to consumers in the form of higher premiums. With the economy still in a fragile state, the coalition hopes to spark legislative action to make Florida’s no-fault auto insurance laws a thing of the past.