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Florida PIP auto insurance getting out of handPosted On Thu, August 18, 2011
According to Florida's Insurance Commissioner Kevin McCarty, the state's personal injury protection (PIP) auto insurance system has risen substantially, as the amount of benefits paid on this type of claim has risen by 70 percent over the last three years.
McCarty says that the nearly $1 billion increase in payments is a result of fraud and abuse. While a rise in medical costs may be part of the financial escalation, it is not likely it would be that significant.
This rapid and considerable growth is more than likely going to result in an $800 to $900 million tax hike for Sunshine State residents, the media outlet reports. In an effort to offset these costs many insurers have raised PIP premiums in an effort to even out, but are falling short.
"Yes, it comes out of the pockets of Joe and Mary Lunchbox," McCarty told the news source. "And it could be through no fault of your own. You could be a very god driver."
While the state government has made attempts to limit fraudulent activities, they have been "largely unsuccessful."
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