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Florida warns against auto insurance fraudPosted On Wed, February 22, 2012
A recent announcement from Florida Governor Rick Scott explained the problems with auto insurance fraud.
The governor of the Sunshine State was recently at the Pat Thomas Law Enforcement Academy where he witnessed staged accidents in order to demonstrate how easy it is for someone to willingly commit insurance fraud. The program, "Put the Brakes on Accident Fraud," noted there are many tactics someone trying to commit a crime will enact. Insurance companies are billed for the phantom injuries, and those involved collect the funds.
"It defies logic that as automobile accidents have decreased by eight percent over the past five years, auto insurance rates have skyrocketed for Florida families - from 80 percent in Tampa and Miami to nearly 50 percent in Jacksonville and Destin," said Jeff Atwater, chief financial officer for the Coalition to Put the Brakes on Accident Fraud.
The Insurance Information Institute announced in December that Florida drivers will have to pay a tax to combat fraud totaling more than $650 million. Fraud in general can raise auto insurance rates significantly.
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