Governor Rick Scott spoke in his state of the state address about the importance of reforms to Florida’s no fault auto insurance system, aimed to significantly reduce the fraud abuse which is currently rampant within it.
According to Scott, the cost of fraud to the people in the state is an estimated $900 million. In his address, he said that “If we do not act, the Office of Insurance Regulation predicts that costs for consumers will continue to spiral out of control.” He also claimed that the premiums that are paid by Floridians are increasing at a rate of approximately 30 percent per year.
He explained that the reason for these dramatic increases is the illegal scamming of the insurance system, and that these everyday behaviors are driving up the costs that eventually takes more money out of the pockets of individuals and families who are trying to pay for their coverage.
Scott stated that if they are to make it a priority of keeping the cost of living as low as possible in the state, then it is vital to slash the auto insurance system abuse. He asserted that the efforts in the state must be geared toward protecting the consumer in the first place, and not simply rely on trial lawyers or the individuals who are already taking part in the schemes themselves.
He acknowledges that the costs that result from the fraud are bringing expenses to the point that they are too high for the people in Florida to be able to afford, and that another year of this cannot be allowed.
Governor Scott, along with Florida CFO Jeff Atwater have already taken action starting back in November 2011, which involved a four step plan to reform the no-fault system in the state, which has been in place since the early 1970s. The current system requires motorists to carry personal injury protection (PIP) with at least $10,000 in coverage per person in order to cover medical expenses, no matter who was at fault in the collision.
