According to the National Insurance Crime Bureau (NICB), orchestrated automotive accidents are steeply increasing in number around the country. For instance, the state of Florida experienced a 58% increase in staged vehicle accidents during 2009. There were 1999 fake auto accidents and a total of 7447 injury claims that were questionable considering all types of insurance simultaneously. Well organized rings of individuals combine forces in order to vex insurance companies. Besides the people actively involved in staging the accidents, doctors, lawyers, insurance company representatives, auto mechanics, auto body technicians and loads of other people are getting in on these acts.
Double digit unemployment in most states is causing increases in all types of crime. From petty theft to grand larceny to automobile insurance fraud to murder, when the economy is compromised, crime rates raise. It is always been that way and always will be. Simple logic dictates that when times are good and money is plentiful, individuals will behave more moralistically than in lean times when opportunities are few. Americans are fed up with multibillion dollar governmental "bailouts" and other worthless plans that do nothing for the average citizen. Instead, grossly overpaid CEOs continue to live luxurious lives while thousands and thousands of people are trying to sell their used video games on Craig's list in order to buy food.
State Farm Mutual Auto Insurance Company, Allstate Corporation, Geico and other leading automobile insurers are combining the resources to discover the doctors and others responsible for loads of alleged car insurance fraud claims. As far back as 2007, fabricated claims of bodily injury costed insurance companies approximately $5.8 billion annually in unnecessary payouts. This of course adds up to lost profits for these insurers, and they're never going to take that lightly. You could guess how $5.8 billion might catalyze some investigation and other fact finding initiatives.
President of the NICB, Joe Wherle stated recently, “South Florida used to be the focal point of these deliberate crashes. While the Miami and Hialeah areas continue to show increased activity, the criminals have expanded their operation northward and Tampa is now at the epicenter of this crime.”
Florida is one of the 12 US states that allow individuals to be reimbursed for automotive accidents with no responsibility to prove who's at fault. As such, Florida also just happens to also have the highest national PIP and fraudulent bodily injury insurance premium rates. Wherle continued, "When people cannot make ends meet because they can't find jobs, they experience very high stress levels. Stress levels like that can cause people to do things they would not normally do. And sadly, many find themselves on the wrong side of the law."
More facts about Florida auto insurance fraud:
- Overall questionable claims to the NICB in 2009 rose 15%, up to 7447 from 6500.
- Staged vehicle accident claims rose 58% from 20008 to 2009, up to 1999 from 1268.
- Florida's unemployment rate increased 38% throughout 2009. It fluctuated between 11.9% and 13.1%, a 35-year high.
Meanwhile, skyrocketing insurance premium rates, severely exaggerated medical costs, jacked-up automobile repair costs and other expenses associated with automobile insurance fraud continue to cost honest Americans billions each year.
