Study Suggests Fraud and Buildup Contribute to Recent Trends in Florida Auto Injury Claims

MALVERN, Pa. – People making auto injury claims in Florida -- especially those in the Miami metropolitan area -- are more likely to report more extensive and more expensive medical treatment than claimants in all no-fault states, even though they report similar injuries.  Attorneys also play a more significant role in the claims process in Florida than in all no-fault states, according to analysis of personal injury protection (PIP) claiming behavior by the Insurance Research Council (IRC).

"Outright fraud and exaggeration of otherwise legitimate claims (buildup) add billions of dollars to the cost of auto insurance nationwide," according to Elizabeth A. Sprinkel, senior vice president, who heads the IRC.  "This report supports the findings of the Florida Grand Jury report in insurance fraud.  It suggests that PIP claiming behavior is a particular problem in Florida and that reform is needed."

The results contained in IRC's recently released report, Auto Injury Claiming Behavior in No-Fault States: An Analysis of Florida PIP Trends, is the latest in a series of IRC studies on auto injury claim trends.