Why Does Everyone Hate Florida No Fault Insurance? - Cheap Auto Quotes
No fault insurance started as a state's solution to help accident victims get their insurance payment for medical treatment, without the need to wait for the court to find out who is at fault. The intention is to help the victim and reduce ambulance chasers from jamming the court system with cases. However, what happens in reality is the rising of medical fees, insurance fraud, and an increased number of lawsuits.
With regards to Florida no fault insurance law, drivers are obligated to purchase PIP (Personal Injury Protection). This creates a leeway that is easily taken advantage of for no more than $10,000 a shot. As the old saying goes, “where there is money, there is theft”. Scammers work together with dishonest doctors and chiropractors to operate clinics in which hundreds to even thousands of inflated claims are filed.
In Florida, claims are to be paid in 30 days after one is filed. If the claims are not addressed, healthcare providers or victims may be able to sue the insurance companies even though some of these healthcare providers are nothing but voodoo shops. Insurance fraud cost the state close to a billion dollars a year, while a typical family pays more than $100 a year for their taxes.
No fault insurance in Florida is blamed for the ballooning of PIP claims that has resulted in increased insurance premiums, making it out of reach to many. It is also blamed for the insurance fraud, causing insurance companies to reduce their business in Florida.
Researchers found that approximately 36% of insurance claims have an element of fraud in it. This includes unnecessary use of medical services and over-billing. The liberality of PIP benefits has driven up the insurance cost in Florida. In 2009, insurance companies referred no less than 2,700 claims to the National Insurance Crime Bureau, a whopping 120% increase from 2008. A study by RAND institute found that there is a 57% higher accident claim in Michigan, (another no-fault insurance state) than in any other state.
So, why does everyone hate Florida no-fault insurance? Is it because it is a flawed system that is easily taken advantage of? Or maybe it is because the number of fraud cases that has driven up the cost of insurance to an all-time high; making it harder for the average family to afford insurance. Or maybe, it is the mandatory requirement to buy PIP. Whatever the cause is, both the insurance companies and drivers are the one who lose with no fault policies.
