There is no question that insurance fraud costs Americans billions of dollars annually. According to the Coalition Against Insurance Fraud (CAIF), the business of fraud costs the industry an estimated $80 to $120 billion each year. Of course, this translates to increased insurance premiums, which has a negative impact on not only the consumer, but also on the economy in general.
According to most sources, the problem is only getting worse. For instance, the Insurance Information Institute (I.I.I.) studies show that “staged accidents” increased 52 percent in the state of Florida from 2009 to 2010. CBS Evening News just ran a special report exposing not only the fraud, but just how easy it is to pull off.
The problem has only gotten worse, expanding to cities of all sizes from coast to coast. To think that staged accidents are limited to Miami, L.A. or New York is a fallacy. While the propensity for fraud may be higher in some jurisdictions than others, the magnet of easy money is universal.
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