fraud facts

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FRAUD FACTS The Most Questionable Claims in the Nation... During each of the last three years, Florida has had the highest number of questionable auto claims resulting from staged/caused accidents in the nation. With 1,446 in 2009, Florida’s questionable auto claims represent 30.1 percent of the national total; its number far exceeds that of 2nd place New York (765).

The Most Hot Spots for Fraud... Four of the 10 U.S. cities with the highest rates of questionable auto claims are in Florida: Tampa, Miami, Orlando and Hialeah.

26% More Injury Claims... When there is damage to an insured vehicle, Florida residents show a greater tendency to file personal injury claims compared to the group of other no-fault states. Injury claims are filed here about 26 percent more often than elsewhere. The level of injury claiming behavior in this state has been generally stable throughout most of the last decade; in contrast, there has been a steady decrease in claiming behavior among the group of other no-fault states.

Personal Injury Lawyers Drive Up Costs... The use of attorneys in Florida’s auto injury claims is higher than in other no-fault states. Floridians are one-third more likely to seek legal assistance to help them settle their claims than elsewhere. More than half (54 percent) of claimants in this state hired an attorney in 2007, resulting in an average economic loss that was double the loss of nonrepresented claims ($16,059 per claim - attorney involvement vs. $7,685 per claim - no attorney involvement).

Attorneys Collect More than the Claimants... On average, the net payment made to Florida auto liability claimants who did not have attorney representation was $532. For those claimants who did have attorney representation, their average net payment was less than zero after economic losses and legal fees were deducted. Attorneys received more in legal fees (about $6,000 per claim) than the claimants themselves.

On Average, Claims Cost 20% More... Liability and claim expenses for Florida are higher in 2009 than what it was in 2001, primarily due to the growing claim severity or cost. Although this state’s claim frequency has been declining, it has done so at a much slower pace than elsewhere. The mixture of a faster rising severity and a slower falling frequency has resulted in Florida’s injury costs being 20 percent higher now than in 2001. This growth rate is vastly greater than the national trend with injury costs that are only 5 percent higher now compared to 2001.

The end result of fraud is extremely costly for Florida drivers... Based on the latest data available, Florida motorists as a group pay the 2nd highest auto liability insurance premium in the nation. The 2007 average annual liability premium is $719, which is 51 percent higher than the national mean of $475.