THE VILLAGES, FL — First of all, what, exactly, is PIP? It stands for Personal Injury Insurance, and Florida is one of a dozen states that require car owners to carry it. PIP coverage pays up to $10,000 in medical expenses and lost wages for each occupant of a vehicle in an accident.
So, what is PIP fraud and how does someone actually commit it? There are a couple ways.
Protect yourself from PIP fraud in Florida. Learn the facts. (Photo: iStock)
Driver Staging
In one instance, an Ocala woman and her child had stopped at a red light. When the light turned green, she proceeded across the intersection. However, the driver of a red car on the other side suddenly decided to make a left turn right in front of her. The accident was unavoidable but minor.
The driver of the red car emerged from her vehicle holding her neck and complaining of injury. Fortunately, an off-duty Florida state trooper also was parked at the intersection and witnessed the whole thing. Upon realizing this, the woman with the neck injury suddenly was “just fine.” It turned out she was an uninsured driver and was depending on the other woman’s insurance to pay for her injury.
Clinic Falsification of Records
The more prevalent type of PIP fraud is committed by drivers working with medical clinics that falsify treatment records. Recently, the operator of a Tampa medical clinic and a massage therapist were both arrested for PIP fraud after it was learned they were paying people to lie about needing treatment following accidents. The treatments never took place, but bills were sent to the drivers’ respective insurance companies.
The medical personnel in that incident aren’t the only professionals who have crossed that line. According to a United Auto Insurance Courts report, the rate of PIP fraud has become widespread in Florida. Statewide, faked PIP claims increased 44 percent from 2009 to 2010. Though predominantly in South Florida, more recently, false PIP claims increased in Central Florida by 50 percent. In fact, the state has three of the top 10 cities for staged-accident PIP fraud in the nation — Tampa, Miami and Orlando.
The Cost of PIP Fraud
As a result of PIP fraud, Florida drivers now pay an extra $48.64 per year in PIP premiums. Last April, in an effort to stem the growth of PIP fraud incidents, the Florida Senate Banking and Insurance Committee passed SB 1930, which will require more detailed police reports and will give insurance companies more control over the resulting claims. This bill protects innocent drivers and their insurance companies from having to pay falsified claims.
How to Protect Yourself
In accordance with state law, make sure your auto policy carries PIP insurance. In the event of an accident, Florida drivers can further protect themselves simply by following the requirements of SB 1930. The first step is to call law enforcement to the scene and make sure all the necessary details are recorded, including the names and addresses of both drivers and all passengers.
Questions About PIP Insurance and Fraud?
Contact a Villages-area insurance agent at The McDonald Agency for more information about insurance claims and coverage. The McDonald Agency has offices in Ocala, Summerfield and The Villages. For immediate insurance information, call (352) 622-2333.
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ABOUT THIS ARTICLE: This sponsored content is not intended to provide specific insurance advice for any individual or business entity and should not be relied on for such advice. Persons seeking insurance advice should contact an insurance agent in The Villages by e-mail or call (352) 622-2333 to receive advice that takes individual circumstances into account.
