Auto Accident Reform Legislation Signed into Law
Gov. Rick Scott signed legislation to reform auto accident fraud in Florida on Friday.
Among other things, the legislation will lower the cost of auto insurance premiums for Florida drivers by limiting fraud in Personal Injury Protection (PIP) insurance. On average, accident fraud would have cost Floridians over $1 billion if PIP was not passed.
“Growing up in a family without a lot of money, I truly understand the value of the hard-earned dollar for Florida families,” Scott said in a statement after signing the legislation. “By helping reduce fraudulent auto accident claims, this legislation will benefit the pocketbooks of every Florida family who drives an automobile. I am glad to do my part in keeping the cost of living low in Florida, and I will continue to work to find ways to do so.”
According to the Florida Office of Insurance Regulation, the number of Florida drivers has remained stable, and the frequency of crashes has declined from 2006 to 2010. In spite of these facts, the number of PIP claims opened or recorded spiked 28 percent, while the payment on PIP claims jumped 66 percent during the same period. The legislation is aimed at preventing this fraud.